IT/ILT : Where in support of genuineness of payments of administrative/corporate charges made to AE, assessee brought on record some additional evidence in course of appellate proceedings, matter was to be remanded back for disposal afresh in light of evidence so produced
■■■
[2016] 65 taxmann.com 264 (Delhi - Trib.)
IN THE ITAT DELHI BENCH 'I-1'
Flextronics Software Systems Ltd.
v.
Deputy Commissioner of Income-tax, Circle-11(1), New Delhi*
S.V. MEHROTRA, ACCOUNTANT MEMBER
AND A.T. VARKEY, JUDICIAL MEMBER
IT APPEAL NO. 5550/DELHI/2011
[ASSESSMENT YEAR 2007-08]
JANUARY 7, 2016
Section 92C of the Income-tax Act, 1961 - Transfer pricing - Computation of arm's length price (Comparables and adjustments/Adjustments - Administrative expenses) - Assessee-company was engaged in business of production of computer software products and provision of software development services for communication industry - Assessee entered into international transactions relating to software development services with its AEs - In transfer pricing proceedings, TPO proposed an addition on ground that administrative/corporate charges paid by assessee to its AE had no recognizable value and, thus, arm's length price in respect of said transaction was taken at Nil - DRP set aside objections raised by assessee - In appellate proceedings, assessee submitted additional evidence in support of genuineness of payments in question - Whether on facts, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh in light of new evidence produced by assessee - Held, yes [Para 16] [Matter remanded]
■■■
[2016] 65 taxmann.com 264 (Delhi - Trib.)
IN THE ITAT DELHI BENCH 'I-1'
Flextronics Software Systems Ltd.
v.
Deputy Commissioner of Income-tax, Circle-11(1), New Delhi*
S.V. MEHROTRA, ACCOUNTANT MEMBER
AND A.T. VARKEY, JUDICIAL MEMBER
IT APPEAL NO. 5550/DELHI/2011
[ASSESSMENT YEAR 2007-08]
JANUARY 7, 2016
Section 92C of the Income-tax Act, 1961 - Transfer pricing - Computation of arm's length price (Comparables and adjustments/Adjustments - Administrative expenses) - Assessee-company was engaged in business of production of computer software products and provision of software development services for communication industry - Assessee entered into international transactions relating to software development services with its AEs - In transfer pricing proceedings, TPO proposed an addition on ground that administrative/corporate charges paid by assessee to its AE had no recognizable value and, thus, arm's length price in respect of said transaction was taken at Nil - DRP set aside objections raised by assessee - In appellate proceedings, assessee submitted additional evidence in support of genuineness of payments in question - Whether on facts, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh in light of new evidence produced by assessee - Held, yes [Para 16] [Matter remanded]
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