TaxTMI 
TaxTMI 
2020 (10) TMI 1369
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....t the assessee company is a subsidiary of Watson Wyatt Holdings (Mauritius) and is engaged in providing consulting services in the area of human capital, employee benefits and insurance. For the assessment year 2014-15 they have filed their return of income on 28/11/2014 declaring an income of Rs. 87, 28, 560/-. Since the assessee has entered into certain international transaction, learned AO referred the matter to the learned TPO for determination of the ALP of the international transaction entered into by the assessee. Learned TPO during the course of TP assessment proceedings, noted that the assessee has rendered such services to its AE for an amount of Rs. 48.91 crores and determined the ALP using CUP method as the most appropriate meth....
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....grounds No. 1 to 9 are concerned, at the outset, Ld. AR brought to our notice that in assessee's own case for the assessment years 2011-12 and 2013-14 a coordinate Bench of this Tribunal in ITA No. 1710/del/2016 and ITA No. 7826/del/2017 respectively held that CUP as the most appropriate method. He submitted that for A.Y. 2012-13, no TP assessment was made for which no appeal has been filed. He submitted that once the CUP is held as the most appropriate method in the light of the decision of the Tribunal in assessee's own case for A.Y. 2011-12 and 2013-14, the other grounds will become academic in nature. 5. Ld. DR, on the other hand, heavily relied on the order of the TPO/DRP, and submitted that the lemonade TPO has given justifiable ....
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....hem. Though the UREs are also charged on hourly rate basis, but due to cut-throat competition in this line, pre- determined fixed rate is billed and if the hourly rate is higher than the pre-determined fixed rate, then difference is written off. In our considered opinion, this is a standard practice followed by the enterprises providing similar consultancy services. Further, we find that the assessee has to assume total risk when it is providing services to the UREs whereas when the services are provided to AEs, the risk is that of the AEs whose client has been serviced. 20. We do not find any force in the contention that the evidences are not brought on record. The invoices raised to AEs and non AEs are exhibited in the paper book. Whet....
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....#39;s assistance is required, they devote time. Accordingly, a proper team composition is there to take care of the nature and technical difficulties of the project. Even the OECD Guidelines of July 2010 preferred internal CUP over other methods, since it bears a more direct and closer relationship to the transaction under review. 23. Considering the totality of the facts in the light of invoices relating to AEs and non AEs exhibited in the paper book, we are of the considered opinion that CUP is the MAM and has been rightly adopted by the assessee to bench mark its transactions for provision of consulting services rendered. This grievance is, accordingly, allowed." 8. Since the facts of the instant case are identical to the facts for t....