IN THE ITAT MUMBAI BENCH ‘H’
Assistant Commissioner of Income-tax, 8(1), Mumbai
versus
Genesys International Corpn. Ltd.
IT Appeal NoS. 3333 & 3334 (Mum.) of 2010
[Assessment years 2004-05 & 2005-06]
August 31, 2012
ORDER
B.R. Mittal, Judicial Member
These appeals filed by the department for assessment year 2004-05 and 2005-06 being I.T.A. No.3333/M/2010 relates to assessment year 2004-05 and cross appeals being I.T.A. No.3334/Mum/2010 filed by department and appeal being I.T.A. No.2972/M/2010 filed by assessee relate to assessment year 2005-06 are heard together and are being disposed of by this consolidated order for the sake of convenience and brevity.
2. Firstly, we take up the appeal of department for assessment year 2004-05 being I.T.A. No.3333/M/2010 disputing the order of ld CIT(A) to delete the addition of Rs.66,75,078 made by the Assessing Officer on account of adjustment made by the TOP/AO under section 92CA of the Act with regard to computation of Arms Length Price in respect of international transactions entered with Associated Enterprises.
3. The relevant facts are that assessee is a wholly own subsidiary of Genesys Enterprises Inc. It provides Onsite IT Consultancy Services as well as GIS. Its non-trading branch office located at Denver in USA is engaged in marketing activities for its head office. Genesys India has production facilities in Denver (Aerial film Scanning/Image processing), Bangalore (photogrammetry/Remote Sensign) and Mumbai (AMFM/GIS Mapping, IT). Broadly the services provided are as under:
(i) IT Solutions. It provides technical solutions client needs like solutions for improving profitability enhanced customer relationship and running the business efficiently. It provides application development, implementation services and technical support in client/server and web based environment.
(ii) Geospatial Services. It offers depth and breadth of expertise in Photogrammetry, Remote sensing, Data Conversion, and IT programming consulting.
4. The assessee filed its return of income declaring total loss of Rs. 2,92,83,328. The AO made a reference under section 92CA(1)of the Act for computation of Arms Length Price (ALP) in relation to the international transactions.
5. Assessee filed requisite details to the Transfer Pricing Officer (TPO) in respect of its international transactions which are summarized by the TPO in para 3 of his order as under:
