9911796707
TMI Blog2023 (11) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income-tax Act, 1961 ('the Act') is bad in law and invalid 1 On the facts and circumstances of the case and in law, the Ld. PCIT erred in passing order dated 30 March 2023 under section 263 of the Act ('impugned order') setting aside the assessment order dated 17 March 2021 passed under section 143(3) r.w.s 143(3A) and 143(3B) of the Act ('the assessment order') by the Additional / Joint / Deputy / Assistant Commissioner of Income Tax / Income-tax officer, National e-Assessment Centre ('the Ld. NeAC') on the alleged ground that the assessment order was erroneous in so far as it was prejudicial to the interests of the revenue. 1.2 The Appellant prays that the impugned order be quashed as being bad in l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law, the learned PCIT erred in not following binding decisions of higher appellate authorities. 2. The brief facts of the case are that assessee company filed its return of income on 29-11-2018, declaring total income at Rs. 413,50,97,580/-. Case of the assessee was selected for COMPLETE SCRUTINY under CASS with a special emphasis on "Deduction from Total Income under Chapter VI-A". Statutory notices for scrutiny were issued and served on the assessee. Assessment of the assessee was completed on returned income u/s. 143(3) r.w.s. 143(3A) and 143(3B) of the Act vide dated: 17.03.2021. There after a notice u/s. 263 of the Act was issued by the office of Ld. PCIT on 01.03.2022 to examine the issue of allowability of CSR expenditure u/s. 80G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... says that any expenditure relatable to the discharge of CSR is not business expenditure and cannot be allowed as such. On this aspect, there is no contradiction of the fact submitted by the assessee that in compliance with this requirement, the assessee does not claim any deduction of such amount spent as CSR under any of the provisions between sections 30 and 36 of the Act, and suo moto disallowed the same by adding it back to the profit and loss account. It is only thereafter the business income of the assessee is computed in accordance with the principles laid down for computation of the profits and gains of business or profession in sections 28 to 44DB of the Act. By this, the assessee seeks compliance with Explanation 2 of section 37 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low from it is that it is not the legislative intention to bar the payments covered by section 80G(2) of the Act which were made pursuant to the CSR, and other than covered by section 80G(2)(iiihk) and (iiihl) of the Act. As stated above, clue can be had from the restrictions by way of section 80G (2) (iiihk) and (iiihl) of the Act. Explanation 2 to section 37(1) of the Act which denies deduction for CSR expenses by way of business expenditure is applicable only to extent of computing 'business income' under Chapter IV-D of the Act and; it could not be extended or imported to CSR contributions which was otherwise eligible for deduction under Chapter VI-A of the Act. 7. Where the deduction under section 80G of the Act is also disall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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