IN THE ITAT DELHI BENCH ‘F’
Cowi India (P.) Ltd.
versus
Assistant Commissioner of Income-tax, Gurgaon Circle-1
IT APPEAL NO. 5052 (DELHI) OF 2010
[ASSESSMENT YEAR 2006-07]
APRIL 19, 2012
ORDER
Rajpal Yadav, Judicial Member
The assessee is in appeal before us against the order of Learned Assistant Commissioner of Income-tax dated 17.09.2010 passed under section 143(3) read with section 144C of the Income-tax Act, 1961 for assessment year 2006-07. It has raised thirteen grounds of appeal which are not in consonance with Rule 8 of the ITAT’s Rules, they are descriptive and argumentative in nature. In brief, its grievance is that learned Assessing Officer has erred in making an addition of Rs. 104,37,360 to the total income of the assessee by recomputing the arm’s length price of the international transaction under section 92 of the Act. In other grounds, the assessee has taken arguments in support of its contention that such an addition could not be made on the basis of pleas raised in these grounds.
2. The brief facts of the case are that assessee has filed its return of income electronically on 22.11.2006 declaring taxable income of Rs. 33,92,504. The case of the assessee was selected for scrutiny assessment and a notice under section 143(2) of the Act was issued and served upon the assessee. Learned Assessing Officer has observed that assessee company was formerly known as M/s. Kampsax India Pvt. Ltd. started its operation in India in October 1994 as infrastructure consultancy company. In 1998, it diversified its operation to digital mapping. The assessee is a 100% Export Oriented Unit registered with Software Technology Park of India. It is engaged in the production of large mapping which involved digital mapping, photogrammetry , GIS , satellite remote sensing, orthophoto etc. On an analysis of the accounts, learned Assessing Officer formed an opinion that assessee had entered into international transaction with its associate enterprises and, therefore, a reference under section 92CA(1) of the Act is required to be made to the learned transfer pricing officer under section 92-CA(3) of the Income-tax Act, 1961, in respect of those international transaction. Accordingly, a reference was made to the learned TPO. It emerges out from the learned TPO’s order that assessee has carried out following international transaction with its AE during the financial year 2004-05:
