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2018 (6) TMI 552 - ITAT COCHINDeduction for CSR expenditure - Allowable deduction u/s 37 - revision u/s 263 - Held that:- Since, the assessee had incurred CSR expenses to comply with the directions of Govt. of India the expenditure incurred is incidental to the assessee’s business and ought to be allowed as deduction u/s 37 of the I.T.Act. It was specifically mentioned in the notes on clauses explaining the Finance Bill 2014, that the “Explanation 2” is applicable only from the assessment year 2015-2016. This also implies that CSR expenditure incurred by the assessee upto the assessment year 2014-2015 is an allowable business expenditure u/s 37 of the I.T.Act. A.O. had taken a possible view and the assessment order cannot be stated to be erroneous or prejudicial to the interest of the Revenue, warranting interference u/s 263 of the I.T.Act. Therefore, we set aside the impugned order of the CIT passed u/s 263 of the I.T.Act. - Decided in favour of assessee.
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