Samsung India Electronic Pvt Ltd Vs Assessment Unit Income tax Deptt NFAC (ITAT Delhi)
Expat Salary Allowed, CSR Donation Eligible for 80G: ITAT Delhi Grants Relief to Samsung India
Samsung India Electronics Pvt. Ltd. filed appeals against final assessment orders u/s 143(3) r.w.s. 144C(13) & 144B for AYs 2020-21 & 2021-22.
At the outset, Assessee withdrew transfer pricing grounds (Grounds 2–27 for AY 2020-21; Grounds 3–27 for AY 2021-22) as the transactions were covered under an Advance Pricing Agreement (APA) signed on 25.02.2025 between CBDT & Korean authorities. Tribunal dismissed these grounds as withdrawn.
On disallowance of salary paid to expatriates (Grounds 28–32), Tribunal noted the issue was already decided in Assessee’s favour in earlier years (including AY 2014-15, ITA 9481/Del/2019). Expatriates were engaged on local employment contracts with salary paid in India after TDS u/s 192. Tribunal held Assessee is the real employer & disallowance not justified. Relief was granted for both years.
On disallowance of CSR expenses u/s 80G (Grounds 33–35), Tribunal relied on Delhi bench decisions in Interglobe Technology Quotient Pvt. Ltd., Cheil India Pvt. Ltd., and Max New York Life Insurance Co. to hold that where CSR expenditure is disallowed u/s 37(1), Assessee can still claim deduction u/s 80G, subject to verification of receipts & 80G certificates. Issue was remitted to AO for verification & allowance. Other grounds were consequential.
