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Income Tax Appellate Tribunal, DELHI BENCHES : I-1 : NEW DELHI
Before: SHRI R.S. SYAL & SHRI KULDIP SINGH
ORDER
PER R.S. SYAL, AM:
This appeal filed by the assessee emanates from the order passed by the CIT(A) on 31.05.2013 in relation to the assessment year 2009-10.
We have heard the rival submissions and perused the relevant material on record. This appeal by the assessee was argued along with the appeal for the assessment year 2008-09 for which a separate detailed order has been passed. Both the sides are in agreement that the facts and circumstances of this appeal are, mutatis mutandis, similar to those for the Assessment Year 2008-09. In fact, no separate arguments were made by the either side for this appeal except for adopting their respective arguments made for the A.Y. 2008-09. Following the view taken in our order for the AY 2008-09, we hold as under for the instant year that : -
(i) No separate addition on account of transfer pricing adjustment for the transactions between Indian head office and branch office in Canada should be made because of the aggregation of the financial results of branch office, Canada with the Indian head office;
(ii) No capacity utilization adjustment as claimed, can be allowed; and (iii) The arm’s length price of the international transaction of providing software development services by the assessee to its associated enterprise, Aithent Inc., US, should be re- determined by applying the filters in the manner as discussed in our order for the AY 2008-09.
The impugned order is set aside and the AO/TPO is directed to determine the ALP of the international transactions afresh in the light of our above discussion.
In the result, the appeal is allowed for statistical purposes.
The order pronounced in the open court on 21.09.2016.