Consistency in transfer pricing and CSR deduction verification guide deletion of adjustment and remand under Section 80G.

Transfer pricing adjustment for Technical Support Services, Business Support Services, and Managerial, Administrative and Related Services was deleted because the year was factually identical to an earlier year in the assessee's own case, the aggregation approach had already been accepted, and the associated enterprise services were found proved; on the principle of consistency, a nil adjustment was not justified without contrary material. The CSR contribution issue was treated as potentially eligible for deduction under Section 80G, but only subject to statutory conditions and verification of supporting evidence, so the matter was remitted to the Assessing Officer for factual examination.

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Issues: (i) Whether the transfer pricing adjustment made in respect of Technical Support Services, Business Support Services, and Managerial, Administrative and Related Services was sustainable, and (ii) whether the assessee's CSR contribution was eligible for deduction under Section 80G of the Income-tax Act, 1961.

Issue (i): Whether the transfer pricing adjustment made in respect of Technical Support Services, Business Support Services, and Managerial, Administrative and Related Services was sustainable.

Analysis: The assessment year in question was held to be factually identical to an earlier year in the assessee's own case, where the aggregation approach had been accepted and the rendering of services by the associated enterprises had already been found proved. The same factual matrix, together with the principle of consistency, required the same benchmark to be applied. The markup details were also found to have been furnished, and the segregation-based nil adjustment was not justified on the record.

Conclusion: The transfer pricing adjustment was deleted and the issue was decided in favour of the assessee.

Issue (ii): Whether the assessee's CSR contribution was eligible for deduction under Section 80G of the Income-tax Act, 1961.

Analysis: The contribution towards CSR was treated as capable of qualifying for deduction under Section 80G, subject to satisfaction of the statutory conditions and verification of the supporting evidence. The matter required factual examination by the Assessing Officer on the evidentiary aspect.

Conclusion: The claim was remitted to the Assessing Officer for verification of eligibility under Section 80G.

Final Conclusion: The appeal succeeded on the transfer pricing dispute, while the CSR deduction question was sent back for fresh verification, leaving the matter only partly concluded on merits.

Ratio Decidendi: Where the facts are identical to an earlier assessment year and the associated enterprise services have already been accepted as rendered, the same aggregation approach must be followed on the principle of consistency, and a nil transfer pricing adjustment cannot be sustained without contrary material.

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