Bangalore tribunal ruling upholds transfer pricing adjustment disallowing payment of management charges

Court: Bangalore Income Tax Appellate Tribunal Citation: Gem plus India Pvt. Ltd. (Taxpayer) [ITA No. 352/ Bang/2009] Brief : The Bangalore Income Tax Appellate Tribunal (Tribunal) has ruled on the transfer pricing aspects of management services fees paid by the Taxpayer to its regional headquarter company (associated enterprise or AE). The Tribunal upheld the contention of the Transfer Pricing Officer (TPO) that the Taxpayer has not proved the commensurate benefits received for the service fees paid to the AE and, hence, ruled that the payment of the management services was not justified unde...