2017 (6) TMI 1392

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....olution 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 transactions of Global Sale and Marketing Acti....

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.... 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 the time of hearing." Assessee's Grounds of Appeal 3. The gro....

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....ions 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 Marketing Activity Fees shall be considered as operating cost and has to....