2020 (3) TMI 1502

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....nd circumstances of the case and in law, Assessment Order passed by the Learned Assessing Officer ('Ld. AO') taking cognizance of the directions of the Hon'ble Dispute Resolution Panel ('DRP') proposing a transfer pricing adjustment of Rs. 7,72,75,054 is bad in law. The Appellant therefore prays that the transfer pricing adjustment be deleted. 2. On the facts and circumstances of the case and in law, the Hon'ble DRP/Ld. AO/Ld. TPO erred in disregarding the audited segmental results on the alleged ground that the segmental results submitted by the assessee are not reliable. The Appellant therefore prays that the Ld. AO/Ld. TPO be directed to consider the segmental results for benchmarking the international ....

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....vision of business support services." 2. Brief facts of the case are as under. During the year under consideration, the assessee has carried out its business activities in two Segments, viz. Business Support Services and Trading in FDF. The income in respect of Business Support Services is from the services provided to its AE, for which it is remunerated at cost plus mark up of 20%. The trading in FDF activity entails purchase and sales from/to third parties and this was a new activity, started during the year under consideration. It is submitted by the assessee that in its accounting software, i.e. SAP - ERP, there are various accounting codes and the direct costs related to the specific segment are directly accounted in the respective ....

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....tion consists of Rs. 180.96 lakhs for the premises which, according to the DRP, can only be occupied by companies engaged in IT/IT enabled services and financial services. Hence, it held that this premises cannot be occupied by the segment of trading in FDF of the assessee. Hence, it held that apportionment of this expense to the segment of trading in FDF is not justified. In this regard, we find that the learned Dispute Resolution Panel has not given any basis of its wisdom that this premises cannot be used by the trading segment in FDF. In our considered opinion, this distinction brought about by the learned Dispute Relation Panel is based upon surmise and conjecture without any cogent material brought on record. 6. Furthermore, a....