Case Law Details
JCIT Vs HSBC Professional Services (India) Pvt. Ltd. (ITAT Mumbai)
ITAT Mumbai held that as TPO has gathered financial and functional details of the company by way of using his authority under section 133(6) of the Income Tax Act hence the same needs to provide all the gathered information to the assessee.
Facts-
The assessee company M/s HSBC Professional Services (India) Private Limited is incorporated in India and 98% of the shareholding is held by HSBC holdings BV, Netherlands and the balance of two per cent is held by Hong Kong and Shanghai banking Corp Ltd., India. The assessee company is engaged in providing personnel to various entities of the HSBC group for conducting audit services.
TPO noted that the assessee in its transfer pricing study selected Transactional Net Margin Method as the most appropriate method for benchmarking international transactions. TPO came out with a fresh list of comparables. After considering the objections, TPO made a final list of comparables and arithmetic mean of their PLI was worked out to 24%.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
