Assessee company was engaged in the provision of software development and related support services to its AEs. During the year, assessee entered into international transactions of providing ”Software Development Services” (SDS) to its AEs. In the course of assessment, TPO made an adjustment in respect of said transaction. Assessee submitted that it had entered into an advance pricing (AP) Agreement with CBDT under section 92CC for period of five consecutive years from 2014-15 to 2018-19 and rollback for four consecutive years from 2010-11 to 2013-14 and said AP Agreement was applicable to international transaction of SDS entered into by assessee with its AEs during year as there was no change in FAR of assessee during year vis-a-vis years covered under AP Agreement.\u00a0 The Tribunal accepted the contention of the assessee. On appeal the court held that since there was no change in FAR of assessee during year under assessment vis-a-vis years covered under AP Agreement and consolidated margin (OP\/OC) computed as per AP Agreement was much more than consolidated margin agreed upon between assessee and CBDT for years covered under AP Agreement, though AP Agreement was not specifically applicable to year under assessment, it would have persuasive value to dispute of assessee for other years. The order of the Tribunal deleting the adjustment was affirmed.\u00a0 (AY. 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92C: Transfer pricing-Arm\u2019s length price-Advance Pricing Agreement (APA)-Cost plus pricing methodology-Advance Pricing Agreement would be persuasive value.[S.92CC] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-60713","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fNf","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=60713"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60713\/revisions"}],"predecessor-version":[{"id":60714,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60713\/revisions\/60714"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=60713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=60713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=60713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}