Mr. Ajay Vohra, Sr. Adv. with Dr. Shashwat Bajpai, Mr. Ravi Sharma, Mr. Sarthak v. COMMISSIONER OF INCOME TAX

.....Respondent Through: Mr. Sunil Aggarwal, Sr.SC with Mr. Shivansh B. Pandya and Mr. Viplav Acharya, Ms. Priya Sarkar, JSCs and Mr. Utkarsh Tiwari, Adv. ITA 390/2023 THE COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-1, NEW DELHI .....Appellant Through: Mr. Puneet Rai, SSC with Mr. Ashwini Kumar, Mr. Rishabh Nangia, Mr. Nikhil Jain, Ms. Srishti, Advs. versus CONVERGYS CUSTOMER MANAGEMENT GROUP INC (NOW KNOWN AS CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP INC.) .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Dr. Shashwat Bajpai, Mr. Ravi Sharma, Mr. Sarthak Tripathi and Ms. Simran Madhyan, Advs. ITA 436/2023 CONVERGYS CUSTOMER MANAGEMENT GROUP INC. (NOW KNOWN AS CONCENTRIX CVG CUSTOMER 77 + 78 + ITA 131/2021 and connected matters Page 2 of 12 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/03/2025 at 11:13:55 MANAGEMENT GROUP INC) .....Appellant Through: Mr. Ajay Vohra, Sr. Adv. with Dr. Shashwat Bajpai, Mr. Ravi Sharma, Mr. Sarthak Tripathi and Ms. Simran Madhyan, Advs. versus DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 1(2)(1) INTERNATIONAL TAXATION, NEW DELHI .....Respondent Through: Mr. Sunil Aggarwal, Sr.SC with Mr. Shivansh B. Pandya and Mr. Viplav Acharya, Ms. Priya Sarkar, JSCs and Mr. Utkarsh Tiwari, Adv. ITA 506/2023 THE COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-1, NEW DELHI .....Appellant Through: Mr. Puneet Rai, SSC with Mr. Ashwini Kumar, Mr. Rishabh Nangia, Mr. Nikhil Jain, Ms. Srishti, Advs. versus CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP .....Respondent INC. Through: Mr. Ajay Vohra, Sr. Adv. with Dr. Shashwat Bajpai, Mr. Ravi Sharma, Mr. Sarthak Tripathi and Ms. Simran Madhyan, Advs. ITA 57/2024 THE OF COMMISSIONER (INTERNATIONAL TAXATION)-1, NEW DELHI INCOME TAX .....Appellant 79 + 80 + ITA 131/2021 and connected matters Page 3 of 12 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/03/2025 at 11:13:55 Through: Mr. Puneet Rai, SSC with Mr. Ashwini Kumar, Mr. Rishabh Nangia, Mr. Nikhil Jain, Ms. Srishti, Advs. versus CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP .....Respondent INC. Through: Mr. Ajay Vohra, Sr. Adv. with Dr. Shashwat Bajpai, Mr. Ravi Sharma, Mr. Sarthak Tripathi and Ms. Simran Madhyan, Advs. ITA 58/2024 THE COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-1, NEW DELHI .....Appellant Through: Mr. Puneet Rai, SSC with Mr. Ashwini Kumar, Mr. Rishabh Nangia, Mr. Nikhil Jain, Ms. Srishti, Advs. versus CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP .....Respondent INC. Through: Mr. Ajay Vohra, Sr. Adv. with Dr. Shashwat Bajpai, Mr. Ravi Sharma, Mr. Sarthak Tripathi and Ms. Simran Madhyan, Advs. ITA 115/2024 CONVERGYS CUSTOMER MANAGEMENT GROUP INC. (NOW KNOWN AS CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP INC.) .....Appellant Through: Mr. Ajay Vohra, Sr. Adv. with Dr. Shashwat Bajpai, Mr. Ravi Sharma, Mr. Sarthak Tripathi 81 + 82 + ITA 131/2021 and connected matters Page 4 of 12 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/03/2025 at 11:13:55 and Ms. Simran Madhyan, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE- 1 (2) (1) NEW DELHI .....Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann and Mr. Pratyaksh Gupta, JSCs. 83 + ITA 116/2024 CONVERGYS CUSTOMER MANAGEMENT GROUP INC. (NOW KNOWN ASCONCENTRIX CVG CUSTOMER MANAGEMENT GROUP INC.) .....Appellant Through: Mr. Ajay Vohra, Sr. Adv. with Dr. Shashwat Bajpai, Mr. Ravi Sharma, Mr. Sarthak Tripathi and Ms. Simran Madhyan, Advs. versus 84 + ASSISTANT COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE- 1 (2) (1) NEW DELHI .....Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann and Mr. Pratyaksh Gupta, JSCs. ITA 438/2024 & CM APPL. 46641/2024 (EX. LIST OF DATES & SYNOPSIS) CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP .....Appellant INC Through: Mr. Ajay Vohra, Sr. Adv. with Dr. Shashwat Bajpai, Mr. Ravi Sharma, Mr. Sarthak Tripathi and Ms. Simran Madhyan, Advs. ITA 131/2021 and connected matters Page 5 of 12 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/03/2025 at 11:13:55 versus ACIT (INT. TAXATION), CIRCLE 1 (2) 1, NEW DELHI .....Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann and Mr. Pratyaksh Gupta, JSCs. 85 + ITA 539/2024 THE COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-1 NEW DELHI .....Appellant Through: Mr. Puneet Rai, SSC with Mr. Ashwini Kumar, Mr. Rishabh Nangia, Mr. Nikhil Jain, Ms. Srishti, Advs. versus CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP .....Respondent INC. Through: Mr. Ajay Vohra, Sr. Adv. with Dr. Shashwat Bajpai, Mr. Ravi Sharma, Mr. Sarthak Tripathi and Ms. Simran Madhyan, Advs. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR O R D E R 06.03.2025 The appellant assessee seeks to impugn the order dated 27 % 1. November 2020 and which forms the subject matter of lead appeal number 131 of 2021. The present batch of appeals are concerned with the following Assessment Years1, particulars of which appear in the table which we extract hereinbelow: - 1 AYs ITA 131/2021 and connected matters Page 6 of 12 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/03/2025 at 11:13:55 Item No. 74 75 76 77 78 79 80 81 82 83 84 85 Case No. Title AY ITA-131/2021 Convergya Customer 2013-14 Management v/s CIT ITA-246/2023 CIT V/s Convergys Customer 2013-14 Management Group Inc ITA-290/2023 Convergys Customer Management Group Inc V/s DCIT 2014-15 ITA-390/2023 CIT V/s Convergys Customer 2014-15 2017-18 2017-18 2019-20 2018-19 2018-19 2019-20 Management Group Inc ITA-436/2023 Convergys Customer Management Group Inc. V/s DCIT ITA-57/2024 ITA-506/2023 CIT V/s ConcentriX CVG Customer Management Group Inc CIT V/s ConcentriX CVG Customer Management Group Inc. CIT V/s ConcentriX CVG Customer Management Group Inc. ITA-58/2024 ITA-115/2024 Convergys Customer Management Group Inc V/s ACIT ITA-116/2024 Convergys Customer Management Group Inc V/s ACIT ITA-438/2023 Concentrix Cvg Customer Management Group Inc V/s ACIT ITA-539/2023 CIT V/s ConcentriX CVG Customer Management Group Inc.

2. The principal question which appears to have faced the Income Tax Appellate Tribunal2 was whether a Permanent Establishment 3 of the appellant assessee had come into being in the AYs in question. Before us, it is not disputed that the Tribunal has essentially followed the view that it had expressed for AYs 2006-07 and 2008-09. 2 Tribunal 3 PE ITA 131/2021 and connected matters Page 7 of 12 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/03/2025 at 11:13:55

3. We are however apprised of a Mutual Agreement Procedure4 determination which was subsequently commenced and which culminated in the passing of a resolution which stands embodied the communication 01 February

2018. The aforesaid communication as well as the MAP determination is extracted hereinbelow: - “Office of the Deputy Commissioner of Income Tax Circle- 1(1)(1), International Taxation Wing E-2, 4th Floor, Room No. 409, Civic Centre, New Delhi – 110002 F. No . DCIT/lnt.Tax/Cir 1(1)(1)/2017-18/731 Dated : 01.02.2018 To The Principal Officer M/s Convergys Customer Management Group Inc C/o PricewaterhouseCoopers, Sucheta Bhawan Gate No 2, 11-A, Vishnu Digamber Marg New Delhi - 110 002. Sub : Resolution under section 90 of the Income Tax Act, 1961 r.w Article 27 of the India-USA Double Taxation Avoidance Convention - reg. Please refer to the subject cited above.

2. In this regard, please find enclosed herewith copy of letter F.No.480/7/2013-FTD.I dated 11.12.2017 (received in this office on 25.01.2018) on the subject cited above received from the Joint Secretary (Ft& TR-1) and Competent Authority of India conveying resolution of Mutual Agreement Procedure (MAP) in the case of M/s Convergys Customer Management Group Inc for Assessment Years 2002-03 to 2004-05 and 2006-07 to 2012-13.

3. As per the provisions of sub rule (4) of Rule 44(H) of the Income Tax Rules, 1962, effect to the resolution so arrived at under MAP is to be given within ninety days of receipt of the same, if the assessee :- (i) gives its acceptance to the resolution arrived at under MAP ; and (ii) withdraws its appeal, if any, pending on the issue which was the subject matter for adjudication under MAP 4 MAP ITA 131/2021 and connected matters Page 8 of 12 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/03/2025 at 11:13:55

4. In view of the above, you are required to submit your acceptance to the resolution under MAP done by the Competent Authority as is mentioned in the enclosed letter and submit confirmation of withdrawal of pending appeals, if any, along with documentary proof to the undersigned at the earliest. (Indu Bala) Deputy Commissioner of Income-Tax Circle -1(1)(1), International Taxation, New Delhi” F.No. 480/7 /2013-FTD.I Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Office of the Competent Authority of India ……… Name of the US Competent Authority Name of the Taxpayer PAN Assessing Officer Chief Commissioner Assessment Years Date of Issue Mr. Douglas W. O’Donnell United States Competent Authority Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue, NW Washington DC 20224, USA Convergys US India Private Convergys Services Limited (CIS) AABCC5056G Addl/JCIT Special Range-2, Delhi Pr. CCIT(International Taxation), Delhi Convergys Customer Management Group Inc. (CCMG) AACCC8989M DCIT Circle-1(1)(1), Delhi (Int. Tax), 2002-03 to 2004-05 and 2006-07 to 2012-13

11.12.2017 Resolution under Section 90 of the Income-tax Act, 1961 read with Article 27 of the India-USA Double Taxation Avoidance Convention The Competent Authority of USA under the India-USA Double Taxation Avoidance Convention invoked Mutual Agreement Procedure in the case of Convergys US for Assessment Years (A Ys) 2002-03, 2003-04, 2004-05, 2006-07, 2007-08, 2008 -09, 2009-10, 2010-11, 2011-12 and 2012 - 13.

2. The Competent Authorities of both the countries after ITA 131/2021 and connected matters Page 9 of 12 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/03/2025 at 11:13:55 having examined the facts of the case and issues involved, have arrived at the following resolution with respect to the assessment of the income of Convergys US in terms of Section 90 of the Income- tax Act, 1961 read with Article 27 of the India-USA Double Taxation Avoidance Convention and Rule 44H of the income-tax rules, 1962. Permanent Establishment (Article 5) The Competent Authorities of both the countries have made no determination on whether Convergys US has established an Indian permanent establishment (PE) as per Article 5 of the India-US Double Taxation Avoidance Convention. Convergys US has not agreed or admitted that it, or its US subsidiaries, has a PE in India either. Solely for the purposes of settling multiple years of disputes, the competent authorities of both the countries agree with the following attribution of profits as shown in table below:- Profit Attribution Assessment Year 2002-03 2003-04 2004-05 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Income of Convergys US taxable in India (amount in ₹) ₹846,595 ₹17,809,392 ₹24,654,150 ₹8,380,836 ₹17,901,805 (₹86,625,846) (₹205,978,325) (₹73,594,067 (₹106,479,780) (₹140,556,407) In addition, for AY 2006-07, ₹6,817,878 will be included in the taxable income of Convergys US in India and taxed at the rate of 15%.

3. To the extent not covered herein, all other matters shall be governed as per provisions of the Income-tax Act, 1961.

4. The Assessing Officer will give effect to this resolution in terms of Sub Rules (4) and (5) of Rule 44H of the Income-tax Rules, 1962. (Pragya S. Saksena) Joint Secretary (FT&TR-1) and Competent Authority of India”

4. As is manifest from the above, the communication records that ITA 131/2021 and connected matters Page 10 of 12 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/03/2025 at 11:13:55 the competent authorities of both countries had desisted from making any determination on whether Convergence US had established an Indian PE as per Article 5 of the India-US Double Taxation Avoidance Agreements5. However, and solely with the objective of settling that dispute which straddled multiple years, the parties appear to have agreed to an exercise of attribution. It is thus apparent that the issue of PE remained untouched.

5. However, and although the MAP determination had concluded in 2017 itself, this fact clearly does not appear to have been brought to the attention of the Tribunal and which has evidently proceeded on the basis that its determination for AYs 2006-07 and 2008-09 had survived. In view of the aforesaid and in our considered opinion, this alone would merit the orders impugned herein being set aside so as to enable the Tribunal to examine the matters afresh.

6. We accordingly allow these appeals and set aside the following orders of the Tribunal as tabulated herein below: ITA Number ITA 131 of 2021 ITA 246 of 2023 ITA 290 of 2023 ITA 390 of 2023 ITA 436 of 2023 ITA 506 of 2023 ITA 57 of 2024 ITA 58 of 2024 ITA 115 of 2024 ITA 115 of 2024 Date of Impugned Order 27th November 2020 27th November 2020 11th January 2023 11th January 2023 06th March 2023 06th March 2023 23rd August 2023 23rd August 2023 23rd August 2023 23rd August 2023 5 DTAA ITA 131/2021 and connected matters Page 11 of 12 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/03/2025 at 11:13:55 ITA 438 of 2024 ITA 539 of 2024 14th March 2024 14th March 2024

7. All appeals shall stand revived on the board of the concerned Tribunal to be considered and examined afresh. All rights and contentions of respective parties on merits are kept open. YASHWANT VARMA, J. HARISH VAIDYANATHAN SHANKAR, J. MARCH 06, 2025/neha ITA 131/2021 and connected matters Page 12 of 12 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/03/2025 at 11:13:55