The Income Tax Appellate Tribunal (ITAT), Mumbai bench, while granting relief to Megger India has directed the Assessing Officer to re-consider the disallowance of availing of intra-group services.
The appellant- company is engaged in the business of trading of importing testers and meters from its principles in the UK and selling the same in India. The department was of the view that there is no tangible or direct benefit was derived by the Appellant from receipt of the intra-group services and that the Appellant failed to furnish adequate evidence to demonstrate that the services were actually rendered by the AE, not appreciating the details, explanations, and evidence submitted by the Appellant-Company.
Before the Tribunal, the assessee contended that the issue is squarely covered in favor of the assessee the decision of ITAT in the assesseeās own case for AY 2012-13.
The Tribunal bench comprising Judicial Member Pavan Kumar Gadale and Accountant Member Shameem Yahya held that āthe AO has contradicted himself that he is not applying the benefits test. We find that the proposition of ITAT in the above order is applicable to the facts in the present case to the extent ITAT has inter alia set aside the order, DRP observation that the agreement should have been entered into by the parties in a particular manner by incorporating several other clauses. This observation is duly applicable to this year also. However, since the AO has noted that the assessee has not supplied the relevant documentary evidence and Ld. Counsel of the assessee has agreed that documents may be examined by the AO, we remit the issue to the file of AO only to examine the documents in this regard. Thereafter, AO shall decide as per law keeping in mind ITAT order in assesseeās own case as above and our observations hereinabove.ā
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