Shell Energy India Pvt. Ltd. Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that the TP assessment carried out by the TPO proceeded on the basis of incorrect appreciation of nature of services availed by the assessee from its AE. Thus, issue of determination of ALP of transactions with AE restored back to TPO.
Facts- Vide the present appeal, the appellant has specific challenge to the transfer pricing adjustment made to the international transaction .The services received being in relation to operation of LNG storage and re-gasification terminal of the assessee. The amount of adjustment made by the Transfer Pricing Officer (TPO)/Assessing Officer(AO), being Rs.5,76,79,229/-. And the same stood confirmed by the ld.CIT(A). Being aggrieved, the present appeal is filed.
Conclusion- Held that the TP assessment carried out by the TPO proceeded on the basis of incorrect appreciation of nature of services availed by the assessee from its AE as being regasification services while the assessee repeatedly pointed out with evidence that the services availed pertained to maintenance and operation of regasification terminal of the assessee. The entire exercise needs to be carried out by the TPO after understanding the nature of services availed by the assessee in the proper perspective. Therefore, this issue of determination of ALP of the transactions with the AE is restored back to the TPO for de novo consideration after providing due opportunity of hearing to the assessee.
