TaxTMI 
TaxTMI 
2025 (6) TMI 1323
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....ment order being barred by limitation. However, at the time of hearing, the counsel for the assessee did not press this ground and hence this ground is dismissed as not pressed. 3. In ground Nos.3 to 5, the assessee has challenged the adjustments made by the ld. TPO qua various intra-group services received by the assessee. In ground No.6, the assessee has challenged the levy of interest u/s 234A, 234B & 234C of the Income Tax Act, 1961 (in short "The Act"). It is settled position of law that levy of interest is mandatory and hence these grounds are decided accordingly. 4. Brief facts of the case as coming out from the orders of authorities below are that the assessee is a company and engaged in the business of making adhesive materials. ....
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....R. relied upon the orders of authorities below. 9. After considering the rival submissions and perusing the materials available on record, we observe that similar issue has come up in assessee's own case in IT(TP)A No.837/Bang/2016, IT(TP)A 626/Bang/2017 & IT(TP)A 2031/Bang/2017 dated 10.5.2022 for the assessment years 2011-12 to 2013-14 respectively, wherein the ITAT in its order has observed as under: "16. We have heard rival submissions and perused the material on record. The issue raised before the ITAT are as follows:- Sl. No. Transactions AY 2013-14 AY 2012-13 AY 2011-12 1. Commercial services (IT Support services) Nil Nil 19,97,000 2. Technology License Renewal fee 52,58,825 54,21,169 56,40,000 3. Man....
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....agement fee. 16.2 The subject payments (Management fee and Technology License Renewal Fee) are incurred with respect to the manufacture of industrial adhesives. It is undisputed that the assessee is engaged only in the manufacture, and marketing and therefore dependent on its group companies for intellectual property, skills, expertise, know-how, specialization and technology which are developed in-house by the group in all core areas of its business, benefits also the assessee in the form of consistency in business practice, the economics of scale with regard to global sourcing. The process improvements are also passed on by the group companies to the assessee and same is evident from facts on record. The subject payments are duly suppor....
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....n the case of Dresser Rand India Pvt. Ltd. in ITA No.8753/Mum/2010 wherein it had been held that "the fact that the assessee has availed services in the preceding years without any consideration or not is irrelevant. `The AE may have given the same service on gratuitous basis in the earlier period, but that does not mean that ALP of these services are Nil'. The contention of the TPO that the assessee has not submitted the documentary evidence for the benefit received on account of services rendered is factually incorrect in view of voluminous evidences filed as a paper book. The assessee has also submitted a detailed note explaining the benefits received on account of payment of license and management fees. The TPO and the DRP have failed t....
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....e AE. The AR for the assessee invited our attention to the DRP directions for the A.Y. 2012-2013 and 2013-2014, wherein relief has been allowed considering the above basis to be the scientific basis of cost allocation. We direct the TPO to consider the above evidence, and if the facts remain the same as in the case of subsequent years, allow appropriate relief to the assessee. It is ordered accordingly. 17. In the result, the appeals filed by the assessee are allowed for statistical purposes." 9.1 Perusal of the above order would show that the ld. TPO has invented a new formula in computing the ALP by applying hypothetical CUP method in those years also, which were there before the ITAT. In the present case also, ld. TPO has applied hypo....