Goldman Sachs Services Private Limited Vs JCIT (ITAT Bangalore)
Income Tax Appellate Tribunal (ITAT) Bangalore has ruled in favor of Goldman Sachs Services Private Limited, dismissing appeals by the Joint Commissioner of Income Tax (JCIT) for the Assessment Year (AY) 2015-16. The Tribunal’s decision, issued on [Current Date: July 3, 2025], addressed three key disputes: a transfer pricing adjustment, disallowance under Section 14A, and the eligibility for Section 80G deduction for Corporate Social Responsibility (CSR) expenses, as well as the disallowance under Section 40(a)(ia) related to seconded employees. The ruling significantly relies on the principle of judicial consistency and prior judgments, including those from the Supreme Court and various High Courts.
Transfer Pricing Adjustment (Grounds 2 & 3)
The Dispute: The Assessing Officer (AO), in the computation of total income, made a transfer pricing (TP) adjustment of Rs. 61,43,50,100, despite the Transfer Pricing Officer (TPO) having issued an order under Section 92CA on January 18, 2023, clearly stating the TP adjustment to be “NIL” following directions from the Dispute Resolution Panel (DRP). The petitioner contended that the AO erroneously interpreted the remand by the Tribunal as being to the DRP, whereas it was to the TPO, who had granted full relief.
