TMI Blog2021 (8) TMI 1186X X X X Extracts X X X X X X X X Extracts X X X X ..... ble business expenditure - expenses on tree plantation etc u/s 37 - HELD THAT:- As decided in own case expenses incurred as wholly and exclusively for the purpose of the business. Thus, the expenses incurred in the year under consideration are also eligible for deduction under section 37 of the Act.- Decided in favour of assessee. - ITA No.1859/DEL/2018 - - - Dated:- 27-8-2021 - SHRI O. P. KANT, ACCOUNTANT MEMBER AND SHRI K. N. CHARY, JUDICIAL MEMBER Appellant by : Sh. M. P. Rastogi, Advocate Respondent by : Sh. Gaurav Pundir, Sr. DR ORDER PER O.P. KANT, AM : This appeal by the assessee is directed against order dated 12/02/2018 passed by the Ld. Commissioner of Income-tax (Appeals)-6, Delhi [in short the Ld. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing facility and filed synopsis and case laws relied upon through email. 5. The learned Counsel of the assessee submitted that identical disallowance made in the earlier year has been deleted by the Tribunal in the case of the assessee and therefore issue in dispute is covered in favour of the assessee. 6. The Learned DR on the other and submitted that in view of the Explanation-2 inserted under section 37 (1) of the Act, expenses incurred on Corporate Social Responsibility (CSR) are not eligible for deduction under section 37 of the Act. 7. We have heard rival submission of the parties on the issue in dispute and perused the relevant material on record. We find that in the year under consideration the assessee has incurred ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 99/Del/2012 has allowed CSR expenses in assessment year 2008-09. The Raipur Bench has further held that Explanation (2) to section 37 of the Act, inserted by Finance Act, 2012 has been brought into the Statute w.e.f. 1.4.2013 and this amendment is prospective in nature and accordingly prior to 1.4.2013, CSR expenses are revenue in nature and allowable. We have gone through the details of CSR expenditure incurred by the assessee during the year under consideration i.e. assessment year 2011-12 and we find that the expenses have been incurred in respect of tree plantation/environment protection, construction of Zoology Lab in Rourkela, construction of Special Wings for cerebral palsy children in Rourkela, medical camps in Sirsa village in Bhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e social responsibility incurred prior to this date will necessarily be. ITA No. 4733/Del/2015 2. Coming to ground no. 2 of the assessee s appeal which challenges the expenses incurred towards corporate social responsibility, we find that the Raipur Bench of ITAT in the case of AC1T vs. Jindal Power Ltd. In ITA No. 99/Del/2012 has allowed CSR expenses in assessment year 2008-09. The Raipur Bench has further held that Explanation (2) to section 37 of the Act, inserted by Finance Act, 2012 has been brought into the Statute w.e.f. 1.4.2013 and this amendment is prospective in nature and accordingly prior to 1.4.2013, CSR expenses are revenue in nature and allowable. We have gone through the details of CSR expenditure incurred b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 37(1) comes into play only w.e.f. 1.4.2015 and accordingly, expenses incurred towards corporate social responsibility incurred prior to this date will necessarily be allowable as revenue expenditure. Accordingly, we set aside the order of the ld. CIT(A) on this issue and direct the Assessing Officer to allow the expenses incurred towards corporate social responsibility. [F] Respectfully following the aforesaid precedents vide orders dated 27.4.2018 and 29.11.2018 of Coordinate Benches of ITAT, Delhi; in assessee s own case; in identical facts and circumstances; and further considering that both sides agree that the issue in dispute is squarely covered in favour of the assessee by aforesaid orders dated orders dated 27.4.2018 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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