THE COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-1 NEW DELHI vs. CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP INC.
What did the High Court hold?
The ITAT held that the assessee did not have a dependent agent PE in India. The tribunal also restored the issue of profit attribution to the TPO, directing a specific methodology based on prior rulings.
What were the facts?
The Revenue has appealed against an ITAT ruling concerning the existence of a dependent agent Permanent Establishment (PE) in India through Convergys India Services Private Limited (CIS). The appeal also questions the attribution of profits to this PE.
What were the issues?
The key issues are whether CIS constituted a dependent agent PE for the assessee and the correctness of the profit attribution methodology adopted by the ITAT.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
$~96 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 539/2024 THE COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-1 NEW DELHI .....Appellant Through: Mr Puneet Rai, SSC, Mr Ashvini Kumar and Mr Rishabh Nangia, JSCs. versus CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP INC. .....Respondent Through: Dr Shaswat Bajpai, Advocate. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MS. JUSTICE SWARANA KANTA SHARMA O R D E R % 23.10.2024 CM APPL. 62376/2024(condonation of delay of 46 days in refiling) 1. Issue notice. 2. The learned counsel for the respondent accepts notice. 3. For the reasons stated in the application, the delay of 46 days in re- filing the appeal stands condoned. 4. The application stands disposed of. CM APPL. 62375/2024(Exemption) 5. The exemption is allowed, subject to all just exceptions. 6. The application stands disposed of. ITA 539/2024 7. The learned counsel for the parties state that the issue involved in the present appeal is similar to the appeals filed by the Revenue in respect of other assessment years [ITA Nos.246/2023, 390/2023, 506/2023, 57/2024, 58/2024] and the following substantial questions of law arise in the present This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:03:28
appeal:- “a. Whether the ITAT was correct in law in holding that the assessee is not having Dependent agent PE through Convergys India Services Private Limited [‘CIS’] given the fact that CIS did not have either economic independence or functional independence? b. Whether the ITAT was correct in law in restoring the issue of attribution of profits to the file of Transfer Pricing Officer [‘TPO’] with the direction to adopt the methodology as laid down in the Coordinate Bench ruling in the assessee’s own case for Assessment Year [‘AY’] 2006-07 and AY 2008-09 wherein 15% profit was attributed to PE in India based on the case laws which were related to business of textiles and do not have any distant link with the business of call centre as undertaken by the present assessee?” 8. List on 19.12.2024 along with ITA No.246/2023, 390/2023, 506/2023, 57/2024, & 58/2024. VIBHU BAKHRU, J SWARANA KANTA SHARMA, J OCTOBER 23, 2024 M Click here to check corrigendum, if any This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:03:28
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