2024 (3) TMI 33

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d that the appeal was filed during Corona Period and in view of the relaxation granted by the Hon'ble Supreme Court considering the Covid 19 Pandemic, we are inclined to condone the delay and admit the appeal of the assessee for adjudication. 3. The assessee has raised the following grounds of appeal before us:- "1. On the facts and in circumstances of the case and in law, the final assessment order passed after considering directions of the Hon'ble Dispute Resolution Panel ('DRP') proposing an adjustment of Rs. 4,70,258/-, is bad in law. 2. The Ld. AO have erred, on facts and in law, by referring the case of the Assessee to the Ld. TPO for determination of ALP on the fact that the Assessee has opted for the safe harbor reg....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....developers who has specialization in web designing and 3D visualization software skills. The assessee is a 100% captive service provider to its Associated Enterprise Iomedia Inc. US. The assessee had filed the audit report in Form 3CEFA stating that the assessee had opted for the Safe Harbour Regime for a period of 5 years starting from Asst Year 2013-14 to Asst Year 2017-18. The assessee raised invoices for the services rendered to its US Based AE by taking a mark up of 25% on the total expenses (including depreciation) incurred during the year as per the Safe Harbour. The assessee has entered into an intercompany agreement with its AE with respect to provision of web designing and 3D visualization software services. The invoice wise detai....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ch comprises of :- (i) provision of software development services; (ii) provision of information technology enabled services; (iii) provision of knowledge process outsourcing services; (iv) advance of intra-group loan; (v) provision of corporate guarantee, where the amount guaranteed,- (a) does not exceed one hundred crore rupees; or (b) exceeds one hundred crore rupees, and the credit rating of the associated enterprise, done by an agency registered with the Securities and Exchange Board of India, is of the adequate to highest safety; (vi) provision of contract research and development services wholly or partly relating to software development; (vii) provision of contract research and development services wholly or partly....