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| The Tax Publishers2019 TaxPub(DT) 4893 (Pune-Trib) INCOME TAX ACT, 1961
Section 92C
Assessee had entered into agreement with its AE for receipt of 'Management support services', and such services were actually rendered and same were not in the nature of stewardship or shareholder's activity, therefore, TPO was justified in determining nil ALP holding the services to be in the nature of stewardship activity.
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Transfer pricing - Determination of ALP - Management support service fee - TPO alleging services to be stewardship activity
Assessee claimed deduction of management support service fee paid to AE abroad. TPO determined ALP thereof at nil holding that services rendered by AE were in the nature of stewardship activity and hence not required to be paid for.Held: Duty of TPO was confined statutorily only to determining ALP of the international transaction. Whether or not any benefit of service reached the assessee; whether or not service was duplicate; and whether or not it was a stewardship or shareholder's activity, etc., were the matters to be determined by AO while finalizing assessment. As evident, assessee had entered into agreement with AE for receipt of 'Management support Services', and such services were actually rendered and same were not in the nature of stewardship or shareholder's activity, accordingly no TP adjustment was called for.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
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