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Case Law Details

Case Name : Colt Technology Services (1) Pvt. Ltd. Vs DCIT (ITAT Delhi)
Appeal Number : I.T.A. No. 536/DEL/2015
Date of Judgement/Order : 13/04/2022
Related Assessment Year : 2010-11
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Colt Technology Services (1) Pvt. Ltd. Vs DCIT (ITAT Delhi)

Facts- The assessee Company is incorporated in India on April 1, 2004 and is a part of the Colt Group of Companies and provides Information Technology Enabled Services and contract software development solutions to its associated enterprises. The assessee performs back-end operations in all business areas such as network operations and engineering, IT service provisioning, sales and marketing support, human resources and finance.

The assessee company filed its ROI on 29.09.2010 electronically declaring an income of Rs. 18,08,195/- under normal provision of the Act after claiming deduction of Rs. 27,31,51,569/- and book profit declared at Rs. 20,28,16,758/-. The return was processed u/s 143(1) of the Act. Notice u/s 143(2) of the Act was served upon the assessee company. The representative of the assessee has participated and filed necessary details. During the year under consideration the assessee has entered into international transaction.

The case of the assessee was referred to TPO for determination of ALP u/s 92CA. The TPO vide its order dated 21/01/2014 has determined the ALP and directed the Assessing officer to add a sum of Rs.64,76,61,598/-. The draft assessment order came to be passed as per Section 143(3) read with Section 144C of the Act on 24.02.2014. The assessee has filed objection before the DRP and the DRP vide order dated 10/10/2014 restored the matter to file of the TPO for verification. The TPO vide his report dated 21/11/2014 has suggested that Rs. 55,20,72,545/- shall be treated as accumulative adjustment u/s 92CA of the Act. In compliance with the directions of the DRP and the order of the TPO, the Ld. AO by making addition of Rs. 55,20,72,496/- on account of ALP, passed the final assessment order on 28/11/2014.

Aggrieved by the final assessment order dated 28/11/2014, the assessee has preferred the present appeal. Assessee, additionally, took up the ground that interest u/s 234B and 234C cannot be levied on additional income agreed as per advance pricing agreement.

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