Madras Export Processing Zone, Tambaram, Chennai (Assessee / Appellant) (Revenue / Respondent) PAN: AAACC1351M Assessee by Shri Neeraj Jain, Adv. Shri Abhishek Agrawal, CA Revenue by Shri P.K. Mishra, CIT DR Date of Hearing 12.07.2023 Date of Pronouncement आदे श / O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by assessmentorder dated 15.09.2011 passed by ACIT, Company CircleI(3), Chennai u/s. 143(3) read with section 92CA(3) & 144C(5) of the Incometax Act, 1961 for AssessmentYear ["AY"] 200708, the assessee has filed this appeal. Page 1 of 47 Computer Sciences Corporation India Private Limited, Chennai ITA No.1654/Che/2011 Assessment year 200708 2. This appeal was originally filed at Chennai Bench of ITAT on 10.10.2011 and registered as ITA No. 1654/CHNY/2011. The ITAT, Chennai Bench dismissed this appeal vide order dated 12.11.2013 for non prosecution by assessee. Subsequently, the said order was recalled vide order dated 17.01.2014 in assessee's M/A No. 212/MDS/2013. This way, the appeal again became live for adjudication. Thereafter, Hon'ble President, vide Order No. F.28Cent.Jd(AT)/2020 dated 17.03.2020, held on record, transferred this appeal to ITAT, Indore Bench. This way, this appeal with same number has come up before us for hearing and adjudication. 3. Brief facts leading to present appeal are such that the assessee company filed return of income on 30.10.2007 declaring a total income of Rs. 19,30,66,350/ for AY 200708. The case was selected under scrutiny and statutory notices u/s 143(2)/142(1) were issued by AO and complied by assessee. The AO found that the assessee had entered into international transactions with its Associated Enterprises (AEs) situated outside India. The AO made a reference to Transfer Pricing Officer (TPO) to determine the arm length price (ALP) of those transactions. Vide order dated 26.10.2010 passed u/s 92CA(3), the TPO reported that the transactions undertaken by assessee were not at ALP and an upward adjustment of Rs. 37,69,02,830/ was required. Then, the AO served a draftassessment order dated 28.12.2010 upon the assessee proposing to make additions/disallowances, namely (i) upward adjustment of transferpricing at Rs. 37,69,02,830/ as per TPO's order (ii) reworking of exemption u/s 10A/10B, (iii) capitalization of civil & tiling work in leasehold premise, (iv) depreciation on software, and (v) disallowance u/s 14A. With such disallowances/additions, the AO proposed to determine total income at Rs. 65,98,26,453/. Against draft assessment order, the assessee filed objection dated 28.01.2011 to Disputes Resolution Panel (DRP). The DRP passed order dated 08.09.2011 u/s 144C(5) of the act whereby the objections of assessee were turned down and the draft assessment order of AO was confirmed. Ultimately, the AO passed Page 2 of 47 Computer Sciences Corporation India Private Limited, Chennai ITA No.1654/Che/2011 Assessment year 200708 final assessmentorder dated 15.09.2011 u/s 143(3) having regard to TPO's order u/s 92CA(3) and DRP's order u/s 144C(5). Aggrieved by order of AO, the assessee has come in this appeal. 4. The grounds raised by assessee are as under: "1. The order of the AO passed pursuant to the order of the TPO and the directions issued by the DRP is erroneous, bad in law, prejudicial to the appellant and contrary to the facts and circumstances of the case. Grounds of objection relating to transfer pricing matters 2. The ld. AO and Hon'ble DRP Members have erred in law and facts by upholding the action of the Ld. TPO wherein the Ld. TPO has erred in law and in facts, for not providing any reasons for disregarding the assessee's approach of determining the arm's length price at an entity level in the Transfer Pricing order.