TMI Blog2021 (3) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 115J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of Public Enterprises which the assessee was bound to follow. However, the AO did not accept the assessee s contention and disallowed the provision of CSR u/s 115JB of the Act considering it as an unascertained liability. 2.1 Aggrieved, the assessee approached the Ld. First Appellate Authority. The Ld. CIT (A), while holding the disallowance to be justified, noted that the guidelines issued by the Department of Public Enterprises were not determinative factor to decide the allowability of the provisions. 2.2 Now, the assessee has approached this Tribunal challenging the order of the Ld. CIT (A) by raising the following grounds of appeal: 1. On the facts and circumstances of the case, the order passed by the learned Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lculation so prescribed by the Act. The AR also submitted that the scope of additions to the Net Profit is prescribed in Explanation-1 to Section 115JB of the Act and the scope of such addition cannot be go beyond the specified items and, therefore, the scope of addition u/s 115JB is very limited. The AR reiterated that there was no provision in the law to add back the amount of CSR expenditure which had been duly debited in the profit and loss account and, therefore, in absence of any such provision to disallow the CSR expenditure for computing the book profit u/s 115JB, any expenditure provided for on CSR activities cannot be added back to the net profit. The Ld. AR placed reliance on the judgment of the Hon ble Apex Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (x) Asahi India Glass Limited v. DCIT, ITA No.1637/Del/2014, ITAT DELHI (xi) M/s. Hil Lifecare Limited vs. ACIT in ITA No.ITA No.123/Coch/2017, 11.06.2018. (xii) The National Small Industries Corp Ltd. vs. Add. CIT., ITA No.1367/Del/2016, 25.02.2020. 3.1 The Ld. AR submitted that, therefore, the disallowance u/s 115JB of the Act was violative of the provisions of the Act. 4.0 Per contra, the Ld. Sr. Departmental Representative (DR) submitted that the assessee had added back the impugned provision in the regular computation of income but had not added the same to the book profit for the purposes of Section 115JB of the Act. It was submitted that in terms of Clause-(c) of Explanation-1 to 115JB, the net profit is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, in our considered opinion, it cannot be said that the liability is an ascertained liability. Although, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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