Sec. 92C of Income Tax Act, 1961—Transfer Pricing— Foreign AE should be considered as the tested party.

Facts: The first issue that came up for our consideration of Revenue appeal is aggregation of international transactions and consideration of AE’s of WNS India in UK & US as the tested party.

Held, that an identical issue has been considered by ITAT in assessee own case for AY 2005-06 and 2008- 09, where under identical set of facts, the Tribunal has deleted TPA made by AO/TPO towards international transactions of the assessee with its AE’s, on the ground that once, the department itself has accepted the AE’s as tested party, but also accepted the foreign comparables proposed by the assessee. The TPO cannot aggregate the international transactions for benchmarking. Tribunal further held that transactions of assessee with its AE do not form a single composite transactions and the terms of each transactions have been agreed separately by the assessee with its AE’s. Thus, TPO 's approach of aggregating the international transactions is not appropriate. In view of the above findings of CIT(A), we accept assessee's contention that the foreign AE should be considered as the tested party, accordingly all other grounds of appeal in the Department's appeal with respect to transfer pricing related issues become academic in nature. - ADDI. CIT V/s WNS GLOBAL SERVICES (P.) LTD. - [2020] 182 ITD 059 (ITAT-MUMBAI)