Corteva Agriscience India Pvt. Ltd Vs DCIT (ITAT Delhi)
TP adjustment deleted as services rendered are in nature of intra group services and not stewardship activity
ITAT Delhi held that Transfer Pricing Adjustment made by the revenue on account of administrative support services segment deserves to be deleted since services rendered are in nature of intra group services and not stewardship activity.
Facts- Since the assessee-company had entered into International Transactions for which reference was made to the Transfer Pricing Officer to determine the Arm’s Length Price of such transactions under section 92CA of the Act. The Additional Commissioner of Income Tax (OSD) [TPO-1], New Delhi vide order dated 28.01.2013 enhanced the Arm’s Length Price of the International Transaction for the year 2009-10 at Rs.28,74,84,138/- instead of Rs. Nil. Final assessment order dated 29.04.2013 as per order dated 28.01.2013 of the TPO was passed by AO.
CIT(A) partly allowed the appeal. Being aggrieved, both assessee and revenue has preferred the present appeal.
Conclusion- Co-ordinate Bench in assessee’s own case has held that the services rendered by the two companies were in the nature of intra group services and not stewardship activity. Thus, the entire TP adjustment made by the revenue on account of administrative support services segment deserves to be deleted.
