ITAT rejected TPO’s recharacterisation of Boeing India as Full-Risk entity in technical services arrangement

Boeing India Defense Private Limited Vs DCIT (ITAT Delhi) Conclusion: Transfer Pricing Officer (TPO) had wrongly recharacterised Boeing India Defense Private Limited as a full-risk service provider despite the Associated Enterprise (AE) assuming the entire contractual and operational risks relating to defence support services rendered to the Indian Air Force (IAF). Held: Assessee, a subsidiary of Boeing Company group, was engaged in rendering marketing, technical, management and construction-related support services to its Associated Enterprises (“AEs”) on a cost-plus basis. During the r...