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2021 (11) TMI 141 - AT - Income TaxAllowability of business expenditure - Disallowance of amount expended towards Corporate Social Responsibility - HELD THAT:- Assessee has incurred the expenditure at the behest of the Deputy Commissioner, Bellary which was necessary to be incurred for the purposes of business, in public interest. Respectfully following the aforesaid view, we direct the Ld.AO to delete the disallowance.Decided against revenue. Disallowance of deduction by Central Empower Committee (CEC) towards Reclamation and Rehabilitation expenses - HELD THAT:- As relying on M/S VEERABHADRAPPA SANGAPPA & CO. [2020 (12) TMI 1145 - ITAT BANGALORE] we direct the Ld.AO to allow the same as business expenditure for year under consideration.Decided against revenue. Disallowance of the legal fees incurred by assessee to protect and defend the claim made against the assessee by third parties - HELD THAT:- As relying on SHRI B. KUMARA GOWDA AND VICE-VERSA [2014 (8) TMI 1112 - ITAT BANGALORE]assessee concerned was resisting a suit for protecting its business and not with a view get a new lease. Hon'ble Apex Court in the case of Sree Meenakshi Mill Ltd., has clearly held that taxability of expenditure must depend on the purpose of the legal proceeding, in relation to the business and cannot be computed by the final outcome of the proceedings. We are therefore, of the opinion that the CIT(A) was justified in holding that legal expenses incurred by assessee for litigation deserves to be deleted. - Decided against revenue.
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