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2022 (3) TMI 835 - ITAT BANGALOREReopening of assessment u/s 147 - allowance of Corporate Social Responsibility expenses - contention of the ld. AR is that this issue was already considered by the AO in the original assessment and the AO cannot reopen the assessment on the same issues on change of opinion - HELD THAT:- We are of the opinion that in the present case, the AO wanted to review his own earlier order in the garb of reopening the assessment u/s. 147, which is nothing but change of opinion on the issue which was concluded by him by taking a decision in favour of the assessee in the original assessment. Accordingly, we are of the opinion that reopening of assessment in this case is bad in law. Accordingly, we quash the reassessment.. Nature of expenditure - Penalty expenses in illegal mining areas - HELD THAT:- In our opinion, the issue is squarely covered by the order of the Tribunal in the case of M/s. Veerabhadrappa Sangappa [2020 (12) TMI 1145 - ITAT BANGALORE] wherein held that payment is compensatory in nature only as these funds are meant to be used for public purposes and the assessee could not have commenced its operations without paying the same, the same is allowable as revenue expenditure. We are therefore of the view that payment made as compensation is not hit by Explanation 1 to Section 37(1) and is an allowable expenditure Disallowance of CSR expenditure - HELD THAT:- Hon’ble High Court of Karnataka in the case of CIT v. Infosys Technologies Ltd. [2013 (7) TMI 451 - KARNATAKA HIGH COURT] held that, where assessee incurred expenditure on installation of traffic signals at various parts of city in order to secure free movement of its employees so that they reached office in time, amount so spent being a part of its corporate responsibility, was to be allowed as business expenditure as under section 37(1). Assessee appeal allowed.
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