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ALP of services received from AE couldn't be taken as 'Nil' if assessee was deriving benefit from such services

September 4, 2019[2019] 108 198 (Pune - Trib.)

TRANSFER PRICING : Where in case of assessee, TPO determined ALP of management fee paid to AE at nil on ground that such services were in nature of 'stewardship activity' in view of fact that services rendered by AE under various segments such as 'Business Development', 'Supply Chain Management' and 'Distribution sales services', were in nature of normal business services performed with a view to enable assessee to carry out its business operations efficiently, said services did not qualify as 'stewardship services' and, thus, impugned order passed by TPO was to be set aside

TRANSFER PRICING : In transfer pricing proceedings, each international transaction has to be viewed separately and independent of other international transaction for determining its ALP and, thus, it is impermissible to combine more than one unrelated international transactions for determining their ALP in a unified manner when such transactions are diverse in nature

TRANSFER PRICING : When Assessing Officer makes reference to TPO for determining ALP of international transaction of services availed by assessee from its AE, job of TPO is to consider actual transaction of rendition of service and find out its ALP, however, TPO has no jurisdiction to examine whether service was needed or is duplicate in nature or stewardship or shareholder service because such an exercise falls in exclusive domain of Assessing Officer

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