JUDGMENT :

Satish Chandra Sharma, J.

The present appeal has been filed under Section 268 of the Income Tax Act, 1961 (for short ‘the IT Act’) by the appellants-Income Tax Department being aggrieved by the order dated 19.01.2018 passed by the Income Tax Appellate Tribunal “B” Bench, Bangalore, in ITA No.1947/H/2011 for the Assessment Year 2007-08.

2. The facts of the case reveal that the respondent-assessee was involved in the business of Development of Computer Software aided design and engineering services for automobile Industry. The respondent-company on account of Scheme of amalgamation stood merged with the Wipro Limited, the Scheme of amalgamation was approved by the High Court of Andhra Pradesh vide order dated 21.02.2008 and by the High Court of Karnataka vide order dated 10.01.2008 with effect from 01.04.2007. The facts of the case further reveal in spite of merger of the assessee i.e., M/s. Quantech Global Services Ltd. (QGSL) with M/s. Wipro Ltd. Notice under Section 143(2) was issued on 19.09.2008 upon the assessee. Since there were international transactions carried out by the QGSL, a reference was made to Transfer Pricing Officer (TPO) vide letter dated 30.11.2009 and du