DCIT, New Delhi V. M/s. Convergys India Services Pvt. Ltd., Gurgaon

ITA 629/DEL/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3021 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2009-2010
• Appeal Filed On: 30-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH I - 1 , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SMT. BEENA A. PILLAI , JM ITA NO. 629/DEL/2015 : ASSTT. YEAR : 2009 - 10 DEPUTY COMMISSIONER OF INCOME TAX, CIRC LE - 4(1), NEW DELHI VS M/S CONVERGYS INDIA SERVICES PVT. LTD., DLF ATRIA, JACARANDA MARG, DLF CITY, PHASE - II, GURGAON - 122002, HARYANA (APPELLANT) (RESPONDENT) PAN NO. AA BCC5056G ASSESSEE BY : SH. ANUBHAV RASTOGI, ADV. REVENUE BY : SH. KUMAR PRANAV, SR. DR DATE OF HEARING : 21 .03 .201 8 DATE OF PRONOUNCE MENT : 23 .03 .201 8 ORDER PER N. K. SAINI, AM : THIS IS AN APPEAL BY THE DEPARTMENT AGAINST THE ORDER DATED 28.11.2014 OF LD. CIT(A) - 44, NE W DELHI. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DIRECTING TO EXCLUDE M/S CORAL HUB LTD. (EARLIER KNOWN AS M/S VISHAL INFORMATION TECHNOLOGIES LTD) AS A COMPARABLE WITHOUT APPRECIATING THAT THE HIGH END OR LOW END CANNOT BE CRITERION FOR ACCEPTANCE AND REJECTION OF A COMPARABLE. 2. THE ID. CIT(A) HAS ERRED IN IGNORING THE FACT THAT THE TAX PAYER AND THE TPO HAD SELECTED TNMM AS THE MOST APPROPRIATE METHOD AND NOW THE ASSESSEE CANNOT ARGUE A GAINST SOME OF THE COMPARABLES. 3. THE ID. CIT(A) HAS ERRED IN IGNORING THE FACT THAT THE SELECTED COMPARABLES ARE BROADLY ENGAGED IN THE FIELDS OF ITES. ITA NO . 629 /DE L/201 5 CONVERGYS INDIA SERVICES PVT. LTD. 2 4. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIGHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROU ND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THE APPEAL. 3 . DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE DEPARTMENT IS NOT MAINTAINABLE . SINCE , A MUTUAL AGREEMENT PROCEDURE P ROCEEDING (MAP ) ON THE ISSUE OF ADJUSTMENT MADE TO US RELATED TRANSACTION S WERE INVOKED BY US COMPETENT A UTHORITY, BA SED ON THE REQUEST OF THE ASSISTANCE SOUGHT BY THE US ENTITY UNDER ARTICL E 27 OF INDO - USA DOUBLE TAX AVOIDANCE C ONVENTION. AC CORDINGLY, IN PURSUANCE OF T HE M UTUA L A GREEMENT DATED 19.12.2016 CORRESPONDING RELIEF TO THE ADJUSTMENT S MADE BY THE TPO/AO HAS BEEN COMPUTED. IT WAS FURTHER STATED THAT THE AO HAD GIVEN EFFECT TO THE MAP AND ASSESSED THE INCOME WHICH HAD BEEN ACCEPTED BY THE ASSESSEE. THEREFORE, THI S APPEAL OF THE DEPARTMENT NOW BECOMES INFRUCTUOUS. 4 . THE LD. COUNSEL FOR THE ASSESSEE FURNISHED THE COPY OF THE ORDER DATED 29.08.2017 PASSED BY THE AO GIVING EFFECT TO THE MAP . THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE WAS NOT CONTR OVERTED BY THE LD. SR. DR. WE, THEREFORE, AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES ARE OF THE VIEW THAT THE APPEAL OF THE DEPARTMENT NOW BECOMES IN FRUCTUOUS AFTER THE EFFECT GIVEN BY THE AO TO MAP AND ASSESSING THE INCOME, WHICH HAD BEEN ACCEP TED BY THE ASSESSEE. ITA NO . 629 /DE L/201 5 CONVERGYS INDIA SERVICES PVT. LTD. 3 5 . IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS DISMISSED AS IN FRUCTUOUS . (ORDER P RONOUNCED IN THE COURT ON 23 /03 /2018 ) SD/ - SD/ - ( BEENA A. PILLAI ) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 23 /03 /2018 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR