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2018 (6) TMI 893 - AT - Income TaxDisallowance made on account of peripheral development expenses - allowable busniss expenses - Held that:- The expenditure on peripheral development was incurred by the assessee as a part of corporate social responsibility as per the scheme framed under the Companies Act - such expenditure was incurred by the assessee even in the earlier years and the same was allowed by the A.O. even in the assessment made u/s 143(3) CSR expenditure incurred for construction of schools, electrification of schools etc. it is submitted that the said expenditure cannot be treated as capital in nature as neither the ownership of the school belonged to the assessee nor it had any control over the running of school - expenditure incurred for construction of a block by way of addition to the school building located in a village in the vicinity of mines was incurred for the benefit of its workers and general public - also explanation 2 to Section 37 inserted by the Finance Act, 2014 with effect from 01.04.2015 is not retrospective - hence we are of the view that the action of the A.O. in disallowing the claim of the assessee for peripheral development expenditure as a part of CSR was not well founded and the Ld. CIT(A) was not justified in confirming the said disallowance - thus we delete the same - Decided in favor of assessee.
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