9911796707
TMI Blog2012 (8) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... is filed by the assessee with a prayer to stay the recovery of outstanding demand of Rs. 9,73,86,568 for the asst. yr. 2006-07. 2. As per the facts on record, the assessee is a subsidiary of Capgemini US LLC, USA. The assessee company is engaged in the business of providing software/information technology services. The assessee filed the return of income for the asst. yr. 2006-07 declaring the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. In compliance with the directions of the DRP, the AO passed the assessment order. The AO made the addition of Rs. 1,84,67,50,762 in respect of transactions with the AEs. The AO finally determined the income of the assessee at Rs. 43,98,93,832. As the assessment order has been passed on the directions of the DRP under s. 144C, hence the assessee challenged the assessment order directly before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cryptic order of three pages without giving thought to all the objections raised by the assessee. He further argues that in the preceding years, no adjustment under s. 92CA are made. The assessee has reported 11.81 per cent operating profit which is within +/- 5 per cent allowable under the said provision. He, therefore, submits that very high pitch addition is made by discarding the comparables ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also seen that the AO himself has admitted in the assessment order that the operating profit of the assessee is 12.66 per cent. In our opinion, prima facie the adjustment made by the TPO and also considered by the DRP in respect of the international transactions with the AEs appears to be without application of mind. In our opinion, the assessee made out a prima facie case for grant of the stay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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