TMI Blog2023 (10) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... ties. 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 fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and we are required to consider as to whether any substantial questions of law arise for consideration, we exercise discretion in the matter and condone the delay in filing the appeal. The assessee is a company engaged in the business of mining iron ore and manganese. It filed its return of income for the assessment year under consideration i.e. A.Y. 2014-15 and the assessment was completed under Section 143(3) of the Act by order dated 29th December, 2006. During the course of assessment proceedings the Assessing Officer raised a query with regard to the proposal to disallow the periphery development expenses. The only ground on which such a proposal was made is by referring to a letter dated 16th August, 2008, issued by the Collector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the welfare of the locality. Before the CIT(A) it was contended by the assessee that the periphery development expense was nothing but a corporate social responsibility (CSR) of the assessee company which was carrying out the mining operations in Joda, Orissa State. Further, it was mandatory for the mining industries to look after the development of the area in which mines were operating on account of creating employment opportunities, providing educational facilities to the children etc. Further, it was contended that the expenses incurred by the assessee were on welfare schemes only namely, malaria eradication, distribution of mosquito nets, construction of mandaps etc. which were wholly and exclusively for business purposes. The CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
