Management support service allowable as business expenditure

Cargo Partner Logistics India Private Limited Vs ITO (ITAT Kolkata)

Held that payment towards management support services is allowable as business expenditure as the same is paid for smooth and effective running of the business.

Facts-

In the present case, the assessee moved an application under Section 154 of the Act stating that learned AO had made an apparent mistake and has not given the correct effect of the directions of learned DRP. Learned AO observed that there was an apparent mistake and the transfer pricing adjustment was only required to be made towards managerial and technical services at Rs. 2,47,69,939/- and accordingly corrected the assessed income at Rs. 2,41,24,200/-after adjusting the loss of Rs. 6,45,739/- declared by the assessee.

Conclusion-

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