IN THE ITAT BANGALORE BENCH ‘A’
24/7 Customer.Com (P.) Ltd.
Versus
Deputy Commissioner of Income-tax
IT APPEAL NO. 227 (BANG.) OF 2010
[ASSESSMENT YEAR 2004-05]
NOVEMBER 9, 2012
ORDER
Jason P. Boaz, Accountant Member – This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-IV, Bangalore dt.30.11.2009 for Assessment Year 2004-05.
2. The facts of the case, in brief, are as under :
2.1 The assessee, an Indian Company engaged in the business of providing call centre services exclusively to its Associated Enterprise (A.E.), 24/7 Customer.Com.Inc., USA (24/7 USA), filed its return of income for Assessment Year 2004-05 on 22.11.2004 declaring a total loss of Rs. 40,84,968. The case was processed under section 143(1) of the Income Tax Act, 1961 (herein after referred to as ‘the Act’) and the case was taken up for scrutiny by issue of notice under section 143(2) of the Act. A reference under section 92CA(1) of the Act was made by the Assessing Officer to the Transfer Pricing Officer (TPO) in respect of the following international transactions entered into by the assessee with it’s A.Es.
| Nature of International Transactions | Value Rs. |
| Call Centre Services | 66,00,46,029 |
| Import of Capital Equipment | 45,43,167 |
| Reimbursement of Expenses | 1,78,60,545 |
| Cross Charge of Expenses | 33,56,693 |
| Total : | 68,58,06,434 |
The TPO passed an order under section 92C r.w.s. 92CA(1) of the Act dt. 15.12.2006 making an upward adjustment of Rs. 15,23,42,536 to the international transactions of the assessee in respect to call centre services.
2.2 After receipt of the order of the TPO under section 92CA(1) r.w.s. 92C of the Act, the Assessing Officer completed the assessment by an order under section 143(3) of the Act on 28.12.2006 determining the income of the assessee at Rs. 15,40,92,002. In the order of assessment, the Assessing Officer made the following additions/disallowances :
