SAFRAN ENGINEERING SERVICES INDIA PRIVATE LIMITED,BANGALORE vs. ACIT, BANGALORE

This is an appeal by the Assessee against the final order of Assessment dated 19.10.2012 passed u/s.143(3) read with Sec.144C(13) of the Income Tax Act, 1961 (Act) by the ACIT, Circle 12(3). Bangalore, relating to AY 2008-09.

The grounds of appeal raised by the Assessee reads as follows:

The learned TPO/ AO erred in selecting Comparable Uncontrolled Price Method ("CUP") as the most appropriate method for justifying the payments made by Safran Engineering Services India Private Limited towards the dedicated program manager, payment of information technology services, towards salary cost of deputed managing director and towards the management services provided by the. associated enterprise for the benefit of Safran Engineering Services India Private Limited.

The learned TPO/ AO erred in not appreciating Safran Engineering Services India Private Limited has made the above mentioned payments to the Associated Enterprises following the principles of arm's length standard only to recover the same from the Associated Enterprises for the software services rendered, where the latter has been justified to be at arm's length in the Transfer Pricing ("TP") Documentation.

The learned TPO/ AO erred in not appreciating the documentary proof submitted in relation to the recovery of the above payments made by Safran Engineering Services India Private Limited from the Associated Enterprises by way of billings made for the services rendered.