TaxTMI 
TaxTMI 
2017 (6) TMI 1392
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....suant to the directions of the Dispute Resolution Panel (in short 'DRP') dt.29.12.2014 for the Assessment Year 2010-11. 2. The assessee is a company registered under the provisions of Companies Act, 1956 and subsidiary of Yokogawa Electric Corporation, Japan. The assessee is engaged in the business of industrial automation and control, test and measurement, Information System and Industry Support. The business of the assessee has been divided into three segments namely System, Trading and Products & software development services. The financial results and segmental information has been reproduced by the TPO in paras 3.1 and 3.2 as under : The TPO accepted the other international transactions of the assessee at arm's length except the ....
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....he DRP has not given the concluding finding on the issue of MAM. Since the TPO/A.O. has not given effect to the directions of the DRP properly therefore the assessee is also aggrieved by the final order passed by the TPO/A.O. Thus both revenue as well as assessee are aggrieved by the orders of the authorities below and filed the cross appeals wherein the following grounds have been raised. Revenue's Grounds of Appeal "1. The directions of DRP are opposed to law and facts of the case. 2. The Hon'ble DRP has erred in giving decision in favour of the assessee without giving opportunity of being heard to the revenue as per provision of Section 144C(11). 3. For these and such other grounds that may be urged at t....
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....he AE should not be separately tested but all the international transactions having receipt from the AE and payment to the AE shall be clubbed together and then has to be analysed under TNMM. We further note that the DRP has directed the TPO to determine the ALP in respect of the Global Sale and Marketing Activity Fees instead of considering the ALP at NIL. Therefore in principle we do not find any error or illegality in the directions of the DRP however having regard to the peculiar facts and circumstances of the case wherein the assessee is having multiple and diversified international transactions involving receipt as well as payment, we are of the considered view that the payment in respect of management fees as well as Global Sale and ....
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.... Assessing Officer is bound to follow the directions of the DRP and pass the final order in pursuant to the directions of the DRP. Accordingly, we direct the Assessing Officer to strictly give effect to the directions of the DRP and dispose of the petition filed by the assessee under Section 154 of the Act. 8. Ground Nos.8 & 9 are charging of interest under Section 234B & 234C of the Act which are consequential in nature. 9. In the result, the appeal of the revenue is allowed for statistical purpose and the appeal of the assessee is partly allowed. Order pronounced in the open court on the 9th day of June, 2017. ============= Document 1 3.1. 3.2. The financials of the Taxpayer for the F.Y. 2009-10 is as under. Descrip....
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....nd Global Sales and Marketing Activities Fees ('GSMAF') (b) secondly, the difference between nature of and purpose for which the services are availed by the Appellant against payments towards MF and GSMAF The learned AO/TPO have erred, in law and in facts, by not accepting the transfer pricing analysis undertaken by the Appellant in accordance with the provisions of the Act read with the Rules to determine the arm's length price (ALP) for the impugned international transaction of payment of GSMAF and holding that the Appellant's impugned international transaction is not at arm's length. The learned AO/ TPO have erred, in law and in facts, by incorrectly and unilaterally applying the Comparable Uncontrollable Price....