2018 (7) TMI 2370

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.... For the Appellant : MR. VARUN K. PATEL (3802) For the Respondent : MRS SWATI SOPARKAR (870) ORAL ORDER (PER : HONOURABLE MR. JUSTICE M.R. SHAH) 1. Feeling aggrieved and dissatisfied with the impugned order passed by the learned Income Tax Appellate Tribunal, Ahmedabad I Bench, Ahmedabad dated 17/03/2017 in IT (TP) No. 427/Ahd/2016 for the Assessment Year 2011-12 (assessee's appeal)....

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....nch dated 24/04/2017 in ITA No. 133/AHD/2017 for the Assessment year 2012-13 (assessee's appeal), revenue has preferred Tax Appeal No. 231/2018 with the following proposed questions of law; (a) Whether the ITAT has erred in law and on facts in applying Transactional Net Margin Method (TNMM) instead of CUP method as prescribed under Rule 10B(1)(a) for determining the arm's length price for....

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....management services? (b) Whether the ITAT has erred in law and on facts in deleting the addition made on account of payment of management services fees? 4. So far as proposed question no.(c) common in both the Appeals are concerned, at the outset it is required to be noted that the TPO adopted 3% as acceptable mark up for the Information technology services instead of 10% as claimed by....

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...., in any case, no reason for rejecting the comparables from IT sector only because the AE is not developing the software on its own and providing the software obtained from outside vendors. In view of these discussions, as also bearing in mind entirety of the case, we uphold the grievance of the assessee and direct the Assessing Officer to delete the related ALP adjustment. The assessee gets the r....