Case Law Details
Sulzer Tech India Pvt. Ltd. Vs Addl./Jt./Dy./Asstt. Commissioner of Income Tax (ITAT Mumbai)
Held that treating value of international transaction as NIL without searching for transaction between non-associated enterprises is unsustainable in law
Facts- The assessee is mainly engaged in the business of providing design and engineering services and drawings relating to engineering and IT services. The assessee is a global technical resource centre to support Sulzer Group Companies.
AO determined the arm’s length price of IT support services to be NIL. Ld. DRP rejected the objection filed by the assessee and AO passed the final assessment order. Being aggrieved, the assessee has preferred the present appeal.
Conclusion- Held that the lower authorities claimed to have adopted ‘other method’ by applying need, benefit and evidence test for considering the arm’s length price of this transaction to be NIL.
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