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2021 (3) TMI 779 - AT - Income TaxDisallowance of provision of CSR u/s 115JB - whether the provision for CSR as made by the assessee can be considered as an ascertained liability or not? - HELD THAT:- Although the assessee has set-aside an amount ear-marked for spending towards the CSR obligation, how the ear-marked amount will be finally spent has not been determined. As per the Cambridge Advanced Learner’s Dictionary, the meaning of the word “ascertained” is “to make certain”. In dictionary.com, the word “ascertain” has been described as “to make certain, clear or definitely known”. In the present case, how the amount ear-marked for spending towards the CSR obligation will be spent is “not certain”, “clear” or “definitely known”. At best, it is just an amount which has been set aside for being spent towards Corporate Social Responsibility but without any further certainty of its end-use. Thus, it cannot be said that the liability is an ascertained liability. Although, the Ld. AR has placed reliance on numerous judicial precedents, the same are distinguishable on facts as in those cases the nature/mode of expenditure ear-marked for Corporate Social Responsibility spending was very much determined and specified i.e. the nature/mode of expenditure was “ascertained”. Therefore, on the peculiar facts of this case we are unable to agree to the contention of the Ld. AR that the impugned disallowance u/s 115JB was an ascertained liability. We dismiss the grounds raised by the assessee.
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