TaxTMI 
TaxTMI 
TaxTMI 
2023 (8) TMI 809
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....thus bad in law and void-ab-initio. 2. That the Hon'ble DRP's directions are bad in law and in facts. Grounds on Transfer Pricing ("TP") 3. That the Ld. AO in conformity with the Learned Transfer Pricing Officer ("Ld. TPO") has erred on the facts and in law by adopting a materially defective approach while making the TP adjustment of INR 11,52,81,428 in respect of the international transaction pertaining to payment of management service fees (hereinafter referred to as "impugned transaction"). 4. That the Ld. TPO and Hon'ble DRP erred on the facts and in law, in rejecting the economic analysis in the TP documentation filed by the Appellant in terms of the Section 92D of the Act read with Rule 10D of the Income-tax Rules, 1962 ("the Rules") and proceeded to make the TP addition based on re-determination of the arm's length price ("ALP") of the international transaction. 5. The Hon'ble DRP/Ld. TPO/Ld. AO erred by applying commercial expediency and thereby, considering that there was no tangible benefit for paying the management service fee as there was no scope for the AE to provide services that the Appellant was already performing or could perform....
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....inimum Alternate Tax ("MAT") to the tune of INR 75,43,640 while determining the net tax liability of the Appellant, at the time of passing the final assessment order. 14. Based on the facts and circumstances of the case and in law, the Ld. AO has erred in proposing to initiate penalty proceedings under section 270A of the Act, against the Appellant. 15 Based on the facts and circumstances of the case and in law, the Ld. AO has erred in proposing to levy interest under Section 234B and Section 234D of the Act. 16. Without prejudice, the Ld. AO has erred in computing the interest under section 234B of the Act to INR 2,24,65,704 instead of INR 1,86,18,475." Brief facts of the case : 2. The assessee company filed its original return of income for A.Y. 2018-19 on 30.11.2018 declaring total income of Rs. 17,32,23,430/-. The assessee's case was selected for scrutiny. The Assessing Officer (AO) made a reference under section 92CA(1) of the Act to the Transfer Pricing Officer(TPO) for the determination of Arm's Length Price(ALP) of the international transaction entered into by the assessee with it AE. The TPO vide his order dated 30.07.2021 passed under section 92CA(3) of the A....
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....ments, like invoices, etc. Therefore, in our view, in the cases of related party transactions, like agreements and invoices also cannot be accepted as conclusive evidence, unless other relevant facts and material supporting the contents thereof are brought on record. In the present case, even if the agreement is accepted as genuine, it has been provided therein that the AE shall keep true and accurate books and records of the costs incurred by them. Therefore, if the services had really been rendered by the AE, the same would be reflected in the audited books of account of the AEs and from the said books of account, the cost incurred by the AEs and attributable to the services rendered to the assessee can be identified. The TPO had specifically required the assessee to furnish the details of the costs incurred by the AE along with the financial statements of the AE. However, the assessee failed to furnish the same. The assessee's failure to furnish the details of the cost incurred by the AEs and attributable to rendering of services to the assessee would also lead to the conclusion that no services had actually been rendered by the AEs. Under these facts and circumstances, the copi....
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....e services at Rs. Nil. Findings and Analysis : Ground No. 3 to 12 : 6. The only issue for our consideration is Arm's Length Price of the services provided by the AE, Benteler Automotive (China) Investment Ltd., to the assessee. The assessee had paid an amount of Rs. 11,52,81,428/- to Benteler Automotive (China) Investment Ltd., for management services as per the service agreement, which is at page no. 254 to 260 of the paper book. The TPO and DRP held that no chargeable intra group services were received by the assessee from Benteler Automotive (China) Investment Ltd. Therefore, TPO arrived at ALP of Rs. Nil. It is observed that the Assistant Commissioner of Income Tax(IT), Circle-1, Pune vide his order date 14.01.2021 for A.Y. 2018-19 in the case of Benteler Automotive (China) Investment Ltd., has held that Benteler Automotive (China) Investment Ltd., has provided various managerial services, such as management support, finance, human resources, facility management etc., to Benteler Automotive India Private Limited. Thus, ACIT(IT) has categorically held that various services were provided to the assessee i.e. Benteler Automotive India Private Limited., by its AE, Benteler Aut....