low value adding services — 3 case laws

Gates India Pvt Ltd, Delhi vs. ACIT, Circle-10(1), Delhi

In the result, the appeal of the assessee is allowed

ITA 2379/DEL/2022[2018-19]Status: DisposedITAT Delhi22 Aug 2024AY 2018-19

Bench: Shri Saktijit Dey & Shri Pradip Kumar Kedia

For Appellant: Shri M.P. Rastogi, AdvFor Respondent: Shri Rajesh Kumar, CIT-(DR)

Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 92CSection 92C(1)

business operations and were subsumed while carrying out the business operations of the assessee and formed part of the cost. These services are low value adding services and are centralized services. As per paragraph 7.14 of the OECD guidelines, CUP or a cost based method including cost based TNMM method ... method in contravention of the ratio deductible from various Tribunal decisions. (viii) The intra-group services provided to the assessee are low value adding services and thus a simplified approach should be adopted and all low value adding services cost incurred in supporting the business of MNE group members should

Bmw India Financial Services P.Ltd, Gurugram vs. DCIT, Circle-1(1), New Delhi

In the result, the appeals of the assessee are allowed

ITA 562/DEL/2022[2018-19]Status: DisposedITAT Delhi03 Feb 2023AY 2018-19

Bench: Sh. C. N. Prasaddr. B. R. R. Kumarita No. 478/Del/2022 : Asstt. Year : 2017-18 Ita No. 562/Del/2022 : Asstt. Year : 2018-19 Bmw India Financial Services Pvt. Ltd., Vs Dcit, 1St Floor, Building No. 11, The Oberoi Circle-10(1), Corporate Tower, Dlf Cyber City, Delhi Phase-2, Gurgaon, Haryana-122002 (Appellant) (Respondent) Pan No. Aadcb8986G Assessee By : Sh. Ajit Jain, Ca Revenue By : Sh. Rajesh Kumar, Cit Dr Date Of Hearing: 01.02.2023 Date Of Pronouncement: 03.02.2023

For Appellant: Sh. Ajit Jain, CAFor Respondent: Sh. Rajesh Kumar, CIT DR

Section 143(1)(a)Section 143(3)Section 40aSection 43Section 92C

high end and low end services. It was argued that EU Joint Transfer Pricing Forum suggests a markup of 5% for low value adding services which includes IT services as well. It was further argued that the illustrative list of LVIGS in Para 7.49 of BEPS Action Plan

Bmw India Financial Services Private Limited, Gurgaon vs. DCIT, Circle-10(1), Delhi