TaxTMI 
TaxTMI 
2024 (12) TMI 482
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....short 'DRP') order dated 19.09.2018. 2. At the outset, the Ld.AR of the assessee submitted that in the year under consideration, the Transfer Pricing Officer (hereinafter in short 'TPO') made TP adjustment amounting to Rs. 1,06,37,66,707/- which involves international transactions entered into by the assessee company M/s. Mando Automotive India Pvt. Ltd., (hereinafter in short 'M/s. Mando') with its related Korean & non-Korean entities. Subsequently, according to the Ld.AR, the assessee company had filed an application invoking Mutual Agreement Proceedings (hereinafter in short 'MAP') provisions under Article 25 of the India Korea Double Taxation Avoidance Agreement in respect of the international transactions under taken by the company ....
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....f KRW 3,051,208,369 for the fiscal year 2012 and KRW 6,611,295,991 for the fiscal year 2013. (The agreement reached between the CBDT and the NTS would not serve as precedent for any other assessment year of this taxpayer.) 3. According to the Ld.AR, the assessee as per Rule 44G(6) of the Rules communicated assessee's acceptance of the resolution in writing to the CA in India and consequently, the AO has given effect to the order dated 29.06.2022 by holding as under: Adjustments made towards international transactions with Korean AE's Adjustment not covered under MAP Total transfer pricing adjustment after MAP resolution Relief TPO As per agreement 95,50,73,779 26,37,74,45 10,86,92,928 37,2....
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....actions (Korea transactions) are resolved under MAP proceedings and non-Korea transactions being 10% which are in the similar nature. For easy reference, the chart below gives a bird's eye view of the TP issue which survives as under: Mando India's international transactions with Transaction adjusted as per TP order (AE cost) % to total Position in MAP resolution Korea AEs 3,787,735,853 89.78% Covered in MAP Non-Korea AES 431.066.281 10.22% Not covered in MAP 4,218,802,134 100% 5. For such a proposition (as raised in additional grounds supra), the Ld.AR cited the decision of this Tribunal in the case of Grundfoss Pumps India Pvt Ltd (IT(TP)A No.92/Chny/2019-AY 2015-16) and....
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....isions of this Tribunal as well as Bangalore Tribunal, wherein, the Tribunal held as under: Grundfos Pumps India Private Limited Vs DCIT (IT(TP)A No.92/Chny/2019-AY 2015- 16): 4.5 Upon careful consideration of factual matrix, it could be seen that the assessee has paid aggregate administrative fees of Rs. 1003.58 Lacs to Danish Entity as well as Singapore Entity. The substantial fees of Rs.884.44 Lacs has been paid to Danish entity which has been settled under MAP @50% adjustment. The fees paid to Singapore entity is Rs. 119.14 Lacs and the nature of the services is the same. Therefore, in our considered opinion, the same approach, as settled in MAP for Danish entity would be applicable for the fees paid to Singapore entit....
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.... has been brought on record In these factual circumstances of the case on hand, in our considered view, whatever margin has been determined for 92. 86% of the transactions, the same should be determined / applied for the remaining 7.14% transactions as well. 4.5.3 This proposition finds support in the decisions of the ITAT, Mumbai Bench in the case of JP Morgan Services Pvt. Ltd. (supra) which has been followed by the co- ordinate bench of this Tribunal in the case of CGI Information System Management Consultants Pvt. Ltd. (supra). In this regard, the relevant portion at para 3.6 of the order in the case of JP Morgan Services Pvt. Ltd. is extracted hereunder- 3.6 We have gone through the arguments made by both the sides an....
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....ht out on record. Therefore, in our considerate view, mark-up of 14.38% should be determined for the remaining 4% transactions pertaining to 'non-US entities as well. The assessee gets part relief accordingly." Following the above decision of the ITAT, Mumbai Bench, in the case of JP Morgan Services Pvt. Ltd. (supra), we hold that the margin adopted for US transactions, in ITES Segment, as was decided in the MAP Resolution, shall be adopted for non-US transactions as well. The TPO/A.O. is directed accordingly. 8. After considering the totality of the facts as well as judicial precedents cited (supra), we are inclined to set aside the issue regarding adjustment made by the TPO in respect of international transactions....