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Facts
The assessee filed an appeal against the order of the Assessing Officer, which was passed as per the directions of the Dispute Resolution Panel. The primary issues involve transfer pricing adjustments for corporate guarantees and the disallowance of deductions under Sections 80G and 80-IA.
Held
The Tribunal held that corporate guarantee transactions constitute international transactions and directed the AO to recompute the guarantee fee at 0.5%. The Tribunal allowed the deduction under Section 80G for CSR expenses, relying on various judicial precedents. However, the claim for deduction under Section 80-IA for steam generation was dismissed, as it was not considered 'electrical power' as defined for the purpose of the section.
Key Issues
Whether corporate guarantee is an international transaction and the appropriate ALP. Whether CSR expenses are eligible for deduction under Section 80G. Whether steam generation qualifies for deduction under Section 80-IA as power.
Sections Cited
143(3), 144C, 144B, 92CA(3), 92C(3), 92B, 92C(2), 10B(1)(a), 80G, 135(5), 80-IA, 801A(4)(iv), 234A, 234B
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Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
order
: 11-December-2025 ORDER
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Assessing Officer (hereinafter referred to as Ld. 'AO') passed u/s 143(3) r.w.s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2020-21 dated 24.07.2024, which has been passed as per the directions of the Dispute Resolution Panel-2, New Delhi u/s 144C(5) of the Act, dated 11.06.2024.
The assessee is in appeal raising the following grounds of appeal:
1. Order bad in law and on facts 1.1. That the assessment order passed by the Ld. Assessing Officer ('Ld. AO') under Section 143(3) r.w.s. 144C(13) read with Section 1448 of the Act and read with the order passed by the Ld. Transfer Pricing Officer ('TPO'), 8.8.1 Transcript of the audio of the video recording: “Visual plus process explained video As you can see this is the fuel loading system that is happening. It is loading the fuel into the system. The boiler works on two inputs. One is the fuel which we have to burn to produce energy. The other one is water which will be converted into steam and will be supplied. So what you see here is the fuel loading system. The fuel is loaded from the tanker and into the fuel tanks. From there the fuel will move to the boiler. This section is where water treatment is happening.