M/S MERITOR H vs. INDIA PVT LTD ,MYSOREVS.ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1(1), MYSORE

(B)/2017 2 2. At the outset Ld.AR submitted that only dispute raised by Ld.TPO is in respect of payment of development fees (technical fees)/intragroup services. It has been submitted that though assessee filed all relevant details showing rendering of services and the need of such technical assistance from its AE against which the payments have been made Ld. TPO observed and recorded wrong finding in para 2 of his order in the garb of which, addition has been made without following due process of law.

Ld.AR further submitted that DRP while considering the issue followed their own predecessor order for assessment year 2007-08 wherein, ALP for services rendered were found to be at ‘nil’ thereby upholding adjustment proposed by Ld.TPO. Ld.AR submitted that this Tribunal in assessee’s own case for assessment year 2007-08, remanded the issue back to Ld.TPO with direction to examine the issue afresh by considering details/evidences submitted by assessee and other submissions, which were already on record. He thus submitted that issue may be set-aside to Ld. TPO for reconsidering the issue afresh on the basis of detailed submissions filed by assessee which is already placed on record.

Ld. CIT DR did not object for issue being set aside to Ld.TPO as ALP has not been computed by following the procedure laid down in law.

We have perused submissions advanced by both sides in light of records placed before us.