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| The Tax Publishers2019 TaxPub(DT) 2094 (Pune-Trib) INCOME TAX ACT, 1961
Section 92C
TPO at the outset had determined services, i.e., technical assistance and project management services at 'NIL' without determining ALP of the transactions, hence, matter was remanded to TPO to ascertain ALP of the transactions by adopting most appropriate method prescribed under the Act. Assessee was directed to furnish necessary documents to further substantiate provisions of technical assistance and project management services by AE.
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Transfer pricing - Determination of ALP - Benefit test -
Assessee had received technical assistance and project management services from its AE abroad. Cost of the said services was considered at 'Nil' by TPO on the ground that assessee failed to furnish necessary documents substantiating rendition of services.Held: TPO while determining ALP of certain transaction has got limited jurisdiction. He cannot sit in judgment to ascertain whether services were indeed required by the assessee or not. TPO, in the instant case at the outset had determined services, i.e., technical assistance and project management services at 'NIL' without determining ALP of the transactions, hence, matter was remanded back to TPO to ascertain ALP of the transactions by adopting most appropriate method prescribed under the Act. Assessee was directed to furnish necessary documents to further substantiate provisioning of technical assistance and project management services by AE.
Relied:CIT v. EKL Appliances Ltd. (2012) 345 ITR 241 (Del) : 2012 TaxPub(DT0 2071 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour (by way of remand).
A.Y. : 2010-11
IN THE ITAT, PUNE 'B' BENCH
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