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TMI Blog2019 (2) TMI 1346X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent of Rs. 1,53,74,000/- and Rs. 25,62,000/- respectively by making reference to Explanation 2 to section 37 even though the same is allowable u/s 37(1) of the Income tax Act, 1961. (ii) That Explanation 2 to section 37(1) inserted vide Finance Act(No.2), 2014 is prospective in nature and has no application to year under reference. (iii) That in any case, the appellant being a government undertaking and expenditure on CSR and SD activities having been incurred in compliance with mandatory guidelines issued by Ministry of Heavy Industries, the claim is in accordance with provisions of section 37(1) of the Act. (iv) That even otherwise, these expenses have direct nexus with business activities and there is no legal basis for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal with respect to the CSR expenditure and sustainable development expenditure disallowance, the ld AR submitted that above explanation was inserted w.e.f 01.04.2015 and therefore, same is not applicable to Assessment Year 2013-14. He submitted that the issue is squarely covered by the decision of the coordinate bench in ITA NO. 6794/Del/2014 for Assessment Year 2011-12 dated 02.04.2018 and ITA NO. 123/Del/Cochi/2017 for Assessment Year 2012-12 dated 11.06.2018. The ld AR submitted the paper book stating that nature and expenditure of CSR and sustainable development activities undertaken. The CSR guidelines issued by Ministry of Heavy Industries and Public Enterprises dated 21.12.2010 were also submitted. The assessee also submitted the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in Meghlaya and educational and technical training in marginalized youth of slum area of New Delhi. Certain other similar activities were carried out by the assessee. The assessee carried out the expenses of CSR and sustainable development as per the government guidelines dated 21.12.2010 and 09.04.2010 for both these expenses. According to this guidelines the assessee was to incur these expenditure. The ld AO disallowed the above expenditure applying the provision of explanation 2 to section 37(1) of the Act which has been introduced w.e.f. 01.04.2015. The decision cited by the ld AR clearly covers the issue in favour of the assessee that the explanation 2 introduced w.e.f. 01.04.2015 applies from Assessment Year 2015-16 only. The ld ..... X X X X Extracts X X X X X X X X Extracts X X X X
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