In this case the Appellate Tribunal held that increase in profitability of assessee during relevant period proved that availment of support services from AE had benefitted its business. Thus, TPO is not justified in determining ALP of management fee paid by assessee to its AE at nil. (AY.2008-09)
Michelin India (P) Ltd v. JCIT (2021)186 ITD 62 (Delhi) (Trib)
S. 92C : Transfer pricing – Arms’ length price – Availment of support services from AE had benefitted business of assessee – Thus, ALP of management fee paid to AE could not be determined at nil.