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| The Tax Publishers2020 TaxPub(DT) 0767 (Del-Trib) INCOME TAX ACT, 1961
Section 92C
TPO erred in questioning need and benefit arrived by assessee from payment in respect of availing of services from AE. All that was required to be seen was as to whether there was actual rendition of services or not. Related documents such as emails and invoices clearly showed rendition of services by AE to assessee. Moreover, TPO himself had accepted fees received by assessee from rendering these services. Accordingly, no TP adjustment was called for.
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Transfer pricing - Detrmination of ALP - Intra-group service charges paid to AE - Benefit test applied by TPO
Assessee claimed deduction of charges paid to AE, towards business support services charges paid to AE, towards TPO determined ALP thereof at nil on the ground that assessee did not gain any advantage or benefit as a result of availing of these services.Held: TPO erred in questioning need and benefit arrived by assessee from payment in respect of availing of services from AE. All that was required to be seen was as to whether there was actual rendition of services or not. Related documents such as emails and invoices clearly showed rendition of services by AE to assessee. Moreover, TPO himself had accepted fees received by assessee from rendering these services. Accordingly, no TP adjustment was called for.
REFERRED : EKL Appliances (2012) 345 ITR 241 (Del)
FAVOUR : In assessee's favour.
A.Y. : 2015-16
INCOME TAX ACT, 1961
Section 32(1)(ii)
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