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Facts
The assessee filed an appeal against the order of the AO for assessment year 2017-18. Grounds relating to transfer pricing adjustments were settled under a MAP resolution. Other grounds concerned denial of benefit under section 80G due to alleged lack of documents for donations made.
Held
The tribunal held that grounds related to transfer pricing adjustments were infructuous due to the MAP resolution. For the section 80G issue, the tribunal noted that receipts appeared to have necessary details, and set aside the issue to the AO for fresh adjudication, allowing the grounds for statistical purposes.
Key Issues
Whether transfer pricing adjustment grounds are infructuous due to MAP resolution. Whether the assessee is eligible for deduction under section 80G when the AO denied it for lack of documents, despite the assessee providing receipts.
Sections Cited
80G, 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: BANGALORE
Before: SHRI WASEEM AHMED & SHRI PRAKASH CHAND YADAV
PER WASEEM AHMED, ACCOUNTANT MEMBER:
This is an appeal filed by the assessee against the order passed by the learned AO dated 21/02/2022 in DIN No. ITBA/AST/S/143(3)/2021-22/ 1039951046(1) for the assessment year 2017-18.
At the outset, the learned Counsel for the assessee submitted that the issues raised by the assessee relating to transfer pricing adjustments in Grounds No. 1 to 11 have been settled under a MAP resolution dated 28/03/2025. The learned AR, in support of his contention, filed a copy of the MAP resolution dated 28/03/2025, which is available on record.
IT(TP)A No.275/Bang/2022 Page 2 of 4 According to the learned AR, all the grounds relating to the transfer pricing adjustments should be dismissed as they have become infructuous.
On the other hand, the learned DR could not dispute the submissions made by the learned AR of the assessee.
We have heard the rival contentions of both parties and perused the materials available on record. In view of the above discussion, we hold that Grounds Nos. 1 to 11 relating to transfer pricing adjustment do not require any independent adjudication as issues got settled under MAP resolution dated 28/03/2025. Accordingly, all the grounds raised by the assessee relating to transfer pricing adjustment are dismissed as infructuous.
Regarding the other grounds, i.e., Grounds Nos. 12 to 15 relating to corporate issues, the learned AR submitted that the benefit under section 80G was denied to the assessee by the lower authorities due to lack of documents. However, the learned AR submitted before us that all the necessary documents relating to the donations made by the assessee during the year to Christal House and Habitat for Humanity India, amounting to Rs. 17,75,000/-, were duly filed before the lower authorities. These documents are placed at pages 947 to 948 of the paper book. The learned AR fairly admitted that these supporting documents have not been verified by the lower authorities. Therefore, he prayed that the issue may be set aside to the file of the AO for fresh adjudication in accordance with law.
IT(TP)A No.275/Bang/2022 Page 3 of 4
On the other hand, the learned DR did not raise any objection to setting aside the matter to the file of the AO for fresh adjudication in accordance with law.
We have heard the rival contentions of both parties and perused the materials available on record. From the discussion above, we note that the department has denied the benefit in respect of donations to Christel House India and Habitat for Humanity India, assuming the entities to be non-existent. On the contrary, we note that the receipts issued by Chrystal House India and Habitat for Humanity India for having received the donation from the assessee contained necessary details, justifying registration under section 80G(5) of the Act. The revenue has not pointed out any defect in the receipts. Nevertheless, in the interest of justice and fair play, we are inclined to extend one more opportunity to the assessee to present the necessary documents to justify the deduction under section 80G of the Act. Accordingly, the issue is set aside to the file of the AO for fresh adjudication in accordance with law. Hence, the grounds of appeal of the assessee are allowed for statistical purposes.