This issue is found in PD5.0 SP6, since this latest revision part is not added in the latest version of PSoC Designer. The workaround is mentioned below.
1. Close all PSoC Designer.
2. Replace "CY8C27000DeviceDB.xml" file in "C:\Program Files\Cypress\Common\CypressSemiDeviceEditor\Devices\CY8C27000\" folder with the attached "CY8C27000DeviceDB.xml" file.
3. Open PSoC Designer
4. Under Tools menu, click on "Refresh Driver/User Module Manifest" option.
5. Try to connect device to ICE