CATERPILLAR FINANCIAL SERVIES INDIA PRIVATE LIMITED,WHITEFIELD,BANGALORE,KARNATAKA vs. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, JURISDICTIONAL AO - ACIT, CIRCLE 2(2)(1)), BMTC BUILDING, KORAMANGALA, BENGALURU

ITA 1621/BANG/2024Status: FixedITAT Bangalore04 February 2025AY 2020-21Bench: SHRI WASEEM AHMED (Accountant Member), SHRI SOUNDARARAJAN K (Judicial Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the transaction of management support services is separate and independent and cannot be aggregated with other transactions. It also noted that the assessee failed to sufficiently demonstrate the receipt of services and their benefits, and the costs appeared to be shareholder services.

What were the facts?

The assessee, Caterpillar Financial Services India Pvt. Ltd., paid Rs. 10,78,94,831 to its Associated Enterprise (AE) for intra-group business support services. The Transfer Pricing Officer (TPO) determined the Arm's Length Price (ALP) at NIL, finding no tangible benefit to the assessee.

What were the issues?

Whether the intra-group services transaction could be aggregated with other transactions and whether the assessee sufficiently demonstrated the receipt of services and their benefits.

Which sections of the Income-tax Act were involved?

Section 92CA

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Income Tax Appellate Tribunal, ‘B’ BENCH, BANGALORE

Before: SHRI WASEEM AHMED & SHRI SOUNDARARAJAN K

For Appellant: Shri Nageswar Rao, Advocate
For Respondent: Shri Sridhar E, CIT (DR)
Hearing: 11.11.2024Pronounced: 04.02.2025

PER WASEEM AHMED, ACCOUNTANT MEMBER:

The appeal filed by the assessee is against the Final Assessment order dated 27/06/2024 in DIN No. ITBA/AST/S/143(3)/2024-25/ 1066124976(1) for the assessment year 2020-21. 2. The interconnected issue raised by the assessee is that the AO/TPO/DRP erred in determining the ALP at NIL value of the international transaction representing business support services.

3.

The facts in brief are that the assessee, a private limited company incorporated in India on October 5, 2018, under the Companies Act,

IT(TP)A No.1621/Bang/2024 Page 2

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