The Tax Publishers2019 TaxPub(DT) 1130 (Mum-Trib)

INCOME TAX ACT, 1961

Section 263 Section 37, Expln. 2

Expalnation 2 to section 37 vis-a-vis disallowance of amount spent on CSR was inserted vide Finance (No. 2) Act, 2014, with effect from 1-4-2015 and, therefore, question of disallowing CSR expenses in terms of said provisions during the year under consideration, i.e., assessment year 2013-14 did not arise. Thus, view taken by AO was plausible one and assessment order could not be held as erroneous and prejudicial.

Revision under section 263 - Erroneous and prejudicial order - CIT alleging non-disallowance of CSR expenditure -

CIT held assessment order to be erroneous and prejudicial to the interest of revenue on the ground of AO not having disallowed CSR expenditure incurred by assessee-company. Held: Expalnation 2 to section 37 vis-a-vis disallowance of amount spent on CSR was inserted vide Finance (No. 2) Act, 2014, with effect from 1-4-2015 and, therefore, question of disallowing CSR expenses in terms of said provisions during the year under consideration, i.e., assessment year 2013-14 did not arise. Thus, view taken by AO was plausible one and assessment order could not be held as erroneous and prejudicial.

Supported:ACIT v. Jindal Power Ltd. (2016) 70 taxmann.com 389 (Rai-Trib) : 2016 TaxPub(DT) 3082 (Rai-Trib) and Malabar Industrial Co. Ltd. v. CIT (2000) 243 ITR 83 (SC) : 2000 TaxPub(DT) 1227 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14


INCOME TAX ACT, 1961

Section 263

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