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2023 (10) TMI 405 - CALCUTTA HIGH COURTCSR expenditure - whether a allowable business expenditure? - Tribunal concluded that CSR expenditure incurred prior to the assessment year 2015-16 are allowable as business expenditure - HELD THAT:- CIT(A) after considering the facts held that the activity done by the assessee is undoubtedly a CSR activity and their business expenditure and observed that the expenditure is also part of ledger account of the assessee and the expenditure is incurred in consultation with the State Government Authorities. CIT(A) noted that the Assessing Officer has not doubted any of the vouchers and memos which were submitted by the assessee to substantiate the nature of expenses incurred by them. After taking note of the decision of the Hon’ble Supreme Court in Thakur Prasad Sao Vs. Member, Board of Revenue [1975 (12) TMI 160 - SUPREME COURT] the appeal filed by the assessee was allowed. The revenue carried the matter on appeal before the Learned Tribunal. The Learned Tribunal after reconsidering and reappreciating the facts of the case also noted that it is mandatory for the assessee, which is a mining industry, to look after the development of the area in which the mines were operating to create employment opportunities, provide educational facility to children etc. Thus expenses incurred for the welfare schemes were also taken into consideration and found to be justified. The Learned Tribunal also noted that the expenditure having been claimed by the assessee as of deduction for the assessment year 2014-15 and the mining which was made by adding explanation to Section 37(1) of the Act would not be applicable as it was with effect from the assessment year 2015-16. Thus, Tribunal was satisfied that the CSR expenditure incurred prior to the assessment year 2015-16 are allowable as business expenditure as the same are wholly and exclusively incurred for the purpose of business. Thus, on being satisfied with the factual matrix the Learned Tribunal dismissed the appeal filed by the revenue. No substantial question of law.
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