Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (12) TMI 748 - AT - Income TaxRevision u/s 263 by CIT - allowability of CSR expenses as donation u/s.80G - argument of no adequate inquiry or specific inquiry or recording reasons for accepting assessee’s submission - case of the assessee for selected for scrutiny and original assessment was framed by the AO u/s.143(3) - HELD THAT:- Assessee has filed detailed note on allowability of CSR expenses as donation u/s.80G and therefore the issue was considered by the AO during the assessment proceedings. Besides we note that the assessee has filed the Scheme of Arrangement of demerger alongwith all documents including financials of IDMPL, assessment orders of IDMPL determining losses, book entries incorporating the demerger in the books of the assessee. All conditions of section 2(19AA) were complied with and therefore there was a proper demerger and the same has been accepted by AO. Assessee also filed detailed note on allowability of expenses on CSR u/s.80G vide letter dated 14.12.2018.PCIT has formed an incorrect opinion that the AO has not examined the issue of allowability of CSR expense as donation. Claim of business loss of ₹ 14,36,669/- being set off both by the assessee and by IDMPL, we note that the assessee had claimed the loss of ₹ 14,36,669/- in the first revised return filed on 1.11.2017 and in the second revised filed on 29.3.2018 the said claim was withdrawn by the assesse suo-motto as is evident from amount of income returned in both the income tax returns. We note that the income returned in the first revised return at ₹ 18,14,22,950/- was increased to ₹ 18,28,59,260/- in the second revised return filed on 29.3.2018 and the difference between two returned income is ₹ 14,36,669/-. Thus, the claim of loss of ₹ 14,36,669/- was withdrawn by the assessee. Thus we are inclined to hold that the revisionary proceedings were not valid and so is the revisionary order passed u/s 263 of the Act by ld. PCIT. Issue of interest u/s.244A - The facts before us that the ld PCIT has not given any opportunity to the assesse during the revisionary proceedings and it was also not in the show cause notice issued. So on this basis, the revisions can not be sustained. Beside we note that the interest has been correctly allowed and there is no mistake which his prejudicial to the interest of the revenue. In view of these facts we are to quash the revisionary proceedings as well as order u/s 263 as bad in law. - Decided in favour of assessee.
|