HAMMOND POWER SOLUTIONS PRIVATE LIMITED,HYDERABAD vs. DCIT, CIRCLE 2(1), HYDERABAD

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ITA 76/HYD/2022Status: DisposedITAT Hyderabad09 April 2025AY 2017-18Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MADHUSUDAN SAWDIA, HON’BLE (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee failed to provide sufficient evidence to substantiate the actual rendering of services or the economic benefit derived. The Service Agreement lacked specific deliverables and cost allocation details, and the email correspondences were not contemporaneous or specific enough. The visits by foreign personnel were of supervisory nature and of short duration, insufficient to prove actual service delivery.

What were the facts?

The assessee, Hammond Power Solutions Private Limited, is aggrieved by the final assessment order determining the Arms Length Price (ALP) for technical and stewardship services as Nil. The Assessing Officer (AO) made an upward adjustment of Rs. 1,32,90,250/- based on the directions of the Dispute Resolution Panel (DRP).

What were the issues?

Whether the assessee provided sufficient evidence to prove the rendering of technical and stewardship services to warrant an adjustment to the Arms Length Price, or if the determination of ALP as Nil by the AO/TPO was justified due to lack of substantiating documentation.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 144B,Section 92CA

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, HYDERABAD BENCHES “B”, HYDERABAD

Before: SHRI VIJAY PAL RAO, HON’BLE & SHRI MADHUSUDAN SAWDIA, HON’BLE ACCOUNTANT

For Appellant: Shri P.V.S.S. Prasad, C.A
For Respondent: Ms. M. Narmada, CIT-DR
Hearing: 05/02/2025Pronounced: 09/04/2025

आदेशकी प्रतितिति अग्रेतिि/ Copy of the order forwarded to:-

1. 1. तिर्धारििी/The Assessee : Hammod Power Solutions Private Limited, Hyderabad. C/o.Prasad and Prasad, Chartered Accountants, Flat No.301, M.J. Towers, H.No.8-2- 698, Road No.12, Banjara Hills, Hyderabad. 2. िधजस्व/ The Revenue : The Deputy Commissioner of Income Tax, Circle 2(1), Hyderabad.

3. The Principal Commissioner of Income Tax (Central), Hyderabad.

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