TaxTMI 
TaxTMI 
2014 (2) TMI 838
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....007. It is stated by the assessee that it carries on business of providing IT and IT enabled services to the group companies in BFS group, the associated enterprise (AE) of the assessee located in different countries. The assessee only caters to the companies in its own group and hence it can be termed as a captive service provider. For the assessment year under dispute, the assessee filed is return of income on 20-9-2008 declaring a total income of Rs.74,180/- after claiming deduction u/s 10A of the Act. During the course of scrutiny assessment proceedings, the Assessing Officer noticing that the assessee has entered into international transactions with its AE made a reference to the Transfer Pricing Officer (TPO) for determining the ALP o....
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....ll of Rs.16,68,38,139 was treated as transfer pricing adjustment u/s 92CA of the Act. While determining the ALP as above the TPO also rejected the assessee's claim with regard to pre-operating expenditure of Rs.6,32,65,934/- and amortization of goodwill amounting to Rs.5,722,92,210/- as part of the operating cost. In pursuance to the order passed by the TPO, the Assessing Officer passed a draft assessment order by adding the transfer pricing adjustment of Rs.16,68,38,139 and also recomputed the deduction claimed u/s 10A of the Act by excluding communication expenses from export turnover. The assessee raised objection against the draft assessment order before DRP. The DRP after considering the objection of the assessee directed the Assessing....
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....ther averred in the said affidavit that the revenue from provision of IT services is at 67.06% and that of ITES is 32.94% to the total turnover. In support of such averment made in the affidavit, the assessee also placed reliance upon the certificate issued by the STPI dated 19-2-2007 and 18-4-2007 as well as some other documents submitted along with the affidavit. 7. The learned Departmental Representative, on the other hand, supported the order of the DRP and TPO on his issue. 8. We have considered rival submissions of the parties and perused the material on record as well as orders of the authorities below. On perusal of the order passed by the TPO, it is seen that the assessee has been categorised as ITES Company. According to the....
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..... 11. We have heard submissions of the parties and perused the orders of the lower authorities as well as other materials on record in the context of the issue raised in the aforesaid ground. It is the contention of the learned AR that the assessee company was formed by way of spun off from ADP in January, 2007. During the gestation period for establishment of new premises till October, 2007, this company had rendered services from the premises of ADP. It was submitted that during such period in addition to regular operating expenditure, the assessee has incurred additional expenses on the new premises though not occupied namely rentals, electricity and maintenance etc., till the time the infrastructure was built. It was submitted that t....
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....ext issue as raised in ground Nos. 12 and 13 is with regard to the Assessing Officer excluding communication charges from the export turnover only while computing deduction u/s 10A of the Act. 14. We have heard the submissions of the parties and perused the material on record. It is the sole contention of the assessee before us that if at all the communication charges are to be reduced from the export turnover, then the same has also to be reduced from the total turnover. In support of such contention, the learned AR has relied upon the following decisions:- (i) CIT v. Gem plus Jewellery India Ltd. [2011] 330 ITR 175 (Bom.) (ii) CIT v. Dell International Services India (P.) Ltd. [IT....