K.K. Gupta, Accountant Member. - The assessee has filed this appeal agitating the action of the learned Commissioner of Income-tax (Appeals) in confirming the Arm’s Length Price (in short ‘ALP’) as determined by the Assessing Officer in accordance with the Transfer Pricing Officer’s Order.

2. The brief facts relating to the agitation can be stated as follows :—

2.1 During the previous year relevant to assessment year 2003-04, Philips Software Centre Private Limited (since merged with Philips Electronics India Limited) was engaged in providing software development services to its overseas affiliates. The assessee had various international transactions with its associated enterprises. The assessee conducted a transfer pricing study substantiating that its international transactions were at arm’s length. The assessee filed its return of income for assessment year 2003-04 on 28-11-2003 disclosing a total taxable income of Rs. 2,97,86,420. Subsequently, assessment proceedings were initiated under section 143(3)/143(2) of the Income-tax Act, 1961 and the case of the assessee was also referred to the Additional Director of Income-tax (Transfer Pricing)-II (the TPO). The TPO passed an o