CAPGEMINI TECHNOLOGY SERVICES INDIA LIMITED (FORMERLY KNOWN AS IGATE GLOBAL SOLUTIONS LIMITED), M/S IGATE INFORMATION SERVICES PRIVATE LIMITED MERGED WITH IGATE GLOBAL SOLUTIONS LIMITED,HYDERABAD vs. INCOME TAX OFFICER, WARD-2(1), HYDERABAD

The assessee has pleaded the following substantive grounds in the instant appeal.

On the facts and in the circumstances of the case, the order of the Commissioner of Income Tax (Appeals)-l, Guntur, is erroneous, illegal and unsustainable in law.

The authorities below failed to appreciate that no adjustment was called for under section 92CA of the Act as the ALP determined by the assessee and the ALP arrived at by the AO is within 5% permissible range.

The Authorities below erred in not allowing the Appellant to carry forward the MAT credit available based on the taxes paid under section 115JB of the Act to the extent of Rs.1,47,25,878. 5. On the facts and in the circumstances of the case, the finding of the Commissioner (Appeals) in respect of the above issues are factually and legally incorrect. For these and other grounds that may be urged, it is prayed that the Hon'ble Tribunal may be pleased to allow the appeal. 3. Ld.counsel states very fairly at the outset that the above latter issue of sec. 115 JB computation does not arise from the impugned sec.154 proceedings. The same stands rejected therefore. 4. Next comes the sole surviving issue of assessee’s sec.154 plea pertaining to the computation of its arm’s length price [ALP]. There is hardly any dispute that this is the second round of proceedings between the parties qua the impugned transfer pricing issue under chapter X of the Act. This tribunal’s earlier order in second appellate proceedings dated 25.4.2013 had directed to compute the assessee’s ALP @ 21.62% as it emanates from a perusal of Assessing officer’s giving effect order dated 22.10.2013. The assessee thereafter filed its rectification petition dated 23.8.2014 only to the effect that its operating profit ought to be taken as Rs. 14.88 crores than Rs.10,33,73,048/-. Suffice to say the Assessing officer as well as the CIT(A) have declined the said relief as is the case before us from assessee’s side through its learned counsel Sri AV Raghuram, Advocate. 5. We have given our thoughtful consideration to rival pleadings against and in support of learned lower authorities’ action declining assessee’s rectification petition. We sought to know the correct figure of the assessee’s operating profits taken as into Rs. 10,33,73,048/- as against operating cost of Rs.86,57,70,927/- first of all. The Revenue is fair enough in placing all the 2 AY 2008-09 M/s Capgemini Technology Services India Ltd.