ACIT Vs WNS Business Consulting Services Pvt. Ltd. (ITAT Delhi)
Summary: The Revenue filed an appeal against the order dated 29.09.2017 passed by the Commissioner of Income Tax (Appeals)-44, New Delhi for Assessment Year 2011-12. The assessee, WNS Business Consulting Services Pvt. Ltd., was engaged in export of information technology enabled Business Process Services (“BPO”), including IT Enable Delivery Solutions, back-office data operations and data processing for customers in the financial services industry in the USA, with significant focus on mortgage banking solutions. It had e-filed its return on 30.11.2011 declaring total income of INR 2,73,88,841/-. As the assessee had international transactions with its associated enterprise, the matter was referred to the Transfer Pricing Officer, who by order dated 15.01.2015 under section 92CA(3) proposed an arm’s length price adjustment of INR 87,72,151/- in the ITES segment. The Assessing Officer also proposed disallowance of INR 1,06,80,887/- out of the export deduction claimed under section 10A. As no objections were filed before the DRP, the final assessment was made at INR 4,68,41,880/-. The CIT(A), following orders in the assessee’s own case for preceding assessment years, deleted both additions.
On Ground No.1, concerning deletion of the transfer pricing adjustment of INR 87,72,151/-, the Revenue challenged inclusion and exclusion of various comparables used for benchmarking the assessee’s ITeS BPO services and delivery solutions. Informed Technologies India Ltd., originally selected by the assessee but rejected by the TPO, was directed to be included by the CIT(A). The Tribunal noted that the company had similarly been included in preceding years and the Revenue had not controverted the relevant factual position. Applying the principle of consistency, it confirmed the inclusion.
