TaxTMI 
TaxTMI 
2025 (9) TMI 1192
X X X X Extracts X X X X
X X X X Extracts X X X X
....of Response if received Response type (Full/part/adjournment) Remarks if any Notice u/s 143(2) 29.06.2021 14.07.2021 Received 14.07.2021 Part Notice u/s 142(1) 24.11.2021 06.12.2021 Received 06.12.2021 Notice u/s 142(1) 13.10.2022 20.10.2022 Received 20.10.2022 21.10.2022 Notice u/s 142(1) 28.12.2022 04.01.2023 Received 04.01.2023 19.01.2023 Notice u/s 142(1) 30.05.2022 14.06.2023 Received 06.07.2023 19.07.2023 Adjournment in hearing Full 144C order 29.09.2023 DRP order 20.06.2024 3. As per the CASS reasons the assessee had had undertaken large value international transactions. A reference for determination of Arm's Length Price (ALP) pertaining to International Transaction entered into by the assessee with its Associated Enterprises (AE) was sent to the TPO on 21.01.2022 through the AO- Technical Unit after getting approval of Ld. PCIT(AU) on 19.01.2022. The said reference was received by th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eld on 30 Dec 2023. and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 2023-03-31.1 SERVICES INDIA PRIVATE LIMITED'S NIC code is 7290 (which is part of its CIN). As per the NIC code, it is inolved in Other computer related activities (for example maintenance of websites of other firms/ creation of multimedia presentations for other firms. etc.). 7. From examination of record in light of above submissions, it is crystal clear that Ld. AO while passing final assessment order made adjustment of Rs. 58,83,45,812/- prior to the appellate order of Ld. TPO dated 29.07.204. Ld. TPO had deleted the entire adjustment with respect to SDS segment and has reduced the adjustment in the ITeS segment and adjustment made pertaining to interest on outstanding receivables. Appellant filed rectification application dated 13.08.2024 at page 232 and 238 of paper books against final assessment order. 7.1 Ld. TPO took six comparables rejecting the comparables which were finally included in the final list. Ld. TPO wrongly rejected the comparables to be taken by appellant/assessed. 7.2 In assessment year 2018-19 in appellant's case in ITANo.6727/Del....
X X X X Extracts X X X X
X X X X Extracts X X X X
....;ble Bench that in the Appellant's own case for AY 2018- 19 (refer to page no. 9 to 12 of Annexure 5 for the ITAT order passed in Appellant's own case for AY 2018-19). 9. Learned Authorized Representative for the Department of Revenue relied on orders of final assessment order. 10. From examination of record in light of aforesaid rival contentions, it is crystal clear that Ld. AO in final assessment order rejected documents claimed under Section 80G of the Act amounting to Rs. 36,79,883/-. 10.1 The Co-ordinate Bench in ITA No.1171/Del/2022 titled as "Agilent Technologies (International) P. Ltd. Vs. ACIT" decided on 26.03.2025 in paras 8 to 13. "8. As with regard to the rejecting of deduction claim under section 80G of the Act amounting to INR 55,41,779, the Ld. AR submitted that the Appellant as part of its Corporate Social Responsibility ('CSR') contributed INR 57,30,209 and disallowed the same in the computation of income under section 37 of the Act. Further, to arrive at the net taxable income, the Appellant claimed INR 55,41,779, pertaining to above contribution, as deduction under section 80G of the Act. The AO, upon directions of DRP, disallowed abov....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... as setting up and running schools, social business projects, etc. Such expenditure would include expenditure otherwise falling for consideration under section 37(1) of the Act. On the other hand, companies, instead of undertaking or participating directly in a project, may choose to give donations to institutions that are engaged in undertaking such projects, which is also a recognized way of compliance of CSR obligation. 7.2 The assessing officer and CIT(A) have relied upon General Circular 14/2021 dated 25.08.2021 issued by MCA and "Explanatory Notes to the provisions of the Finance (No.2) Act, 2014" to hold that donations made as part of CSR expenditure are not allowable as deduction. The foundation of their reasoning being that the donation is voluntary in nature, while CSR expenditures are under statutory obligations. 7.3 As we take notice of the fact that Parliament legislated that CSR expenses would not be eligible for deduction as business expenditure under section 37 of the Act by inserting Explanation 2 to section 37(1) vide the Finance (No.2) Act, 2014 (applicable from the assessment year 2015-16), which provided that any expenditure incurred by an ass....