TaxTMI 
TaxTMI 
TaxTMI 
2018 (1) TMI 1711
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....ce provider and is engaged in software development services for Tieto group of companies. During the period relevant to assessment year under consideration the assessee had entered into following international transactions with its Associated Enterprises (AEs) : S. No. International Transactions Amount (in Rs.) 1 Provision of software development services 85,27,75,121 2 Allocation of management support services cost (MSS) 3,15,52,252 3 Payment for software licenses 3,63,43,474 4 Interest payment on external commercial borrowings (ECB) 13,06,448 5 Reimbursement of expenses 38,30,819 6 Recovery of expenses 14,94,14,445 2.1 The ld. AR submitted that the parent company of Tieto group has set up a centralized mechanism for ....
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....see to its AE were accepted by the TPO to be at arm's length. The ld. AR furnished copy of the order of TPO dated 24-10-2011 for assessment year 2008-09 and order dated 23-01-2013 for assessment year 2009-10 at the time of hearing of appeal. The ld. AR further submitted that in the subsequent assessment year i.e. assessment year 2011-12 the TPO had made similar disallowance of entire MSS fee. However, the Dispute Resolution Panel (DRP) deleted the entire addition. The ld. AR referred to the directions of DRP dated 15-12-2015 for assessment year 2011-12 at pages 674 to 701 of the paper book (relevant page 689, para 2.15). The ld. AR further submitted that in assessment year 2012-13 again the TPO accepted transaction value of MSS fee paid by ....
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....nt vehemently supporting the findings of Commissioner of Income Tax (Appeals) submitted that the assessee has failed to show the services rendered by AEs. Except for bald assertions, the assessee has not filed any cogent evidence to support his contentions that MSS were rendered by its AE and commensurate benefit was derived by the assessee. The ld. DR further contended that in the assessment years where the assessee was able to show that MSS were in fact received by the assessee from AE, the payment of MSS fee has been allowed. 4. We have heard the submissions made by the representatives of rival sides and have perused the orders of the authorities below. The assessee in appeal is primarily aggrieved against TP adjustment of Rs.3,15,52,25....
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....o these international transactions." 5. The ld. AR of the assessee has stated at the Bar that the international transactions carried out by the assessee in the assessment year under appeal are similar to the one covered by APA. In view of the statement made by ld. AR and undisputed fact that the assessee has entered into APA with the Board we deem it appropriate to remit this file back to Commissioner of Income Tax (Appeals) for re-examination of the issue in the light of terms and conditions of the APA, subject to verification that the international transactions in dispute in the assessment year under appeal are similar to the transactions covered by APA. 6. Now, the question arises, whether the terms and conditions set out in APA can b....
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....similar to the international transactions entered during assessment years 2010-11 to 2015-16. In view thereof, where the international transactions entered into by the assessee with its associate enterprises are similar to the international transactions in the succeeding years, then where the APA proceedings have been carried out in the case of assessee and the Board and the assessee have come to a settlement vis-à-vis the manner of computation of arm's length price in the case of assessee in relation to the international transactions with its associate enterprises, we deem it fit to restore this issue also back to the file of Assessing Officer, who shall consider the plea of assessee and shall after obtaining report from the TPO....