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2021 (1) TMI 828 - ITAT KOLKATARevision u/s 263 - Allowability of Corporate Social Responsibility Expenses - AO not enquired into the nature of these expenses to determine allowability of these expenses u/s. 37(1) - lack of enquiry OR Inadequate enquiry - HELD THAT:- We hold that it is not a case of lack of enquiry. The allegation is only of inadequate enquiry, which cannot be a ground for revision u/s. 263 of the Act. Thus on this ground the order passed u/s. 263 of the Act is bad in law. The AO had examined the issue and taken a possible view. In addition to the case law cited above, the direction of Pr. CIT that only expenditure incurred for the benefit of the assessee is allowable u/s. 37(1) of the Act is against the propositions of law laid down in P. BALAKRISHNAN, COMMISSIONER OF INCOME-TAX [1999 (10) TMI 33 - KERALA HIGH COURT], SPINNING AND WEAVING MILLS LIMITED. [2004 (9) TMI 10 - RAJASTHAN HIGH COURT], COATS VIYELLA INDIA LTD. [2000 (11) TMI 24 - MADRAS HIGH COURT] Applying the propositions of law laid down in the decision of the Tribunal in Bengal NRI Complex Ltd.[2018 (12) TMI 744 - ITAT KOLKATA]we have to hold that the expenditure incurred by the assessee to fulfil the obligations of Section 135 of Companies Act, 2013 is allowable as deduction and consequently there is no error in the order passed by the AO u/s. 143(3) of the Act much less an error which is prejudicial to the interest of the Revenue. We quash the order of the Pr. CIT passed u/s. 263 of the Act as bad in law.- Decided in favour of assessee.
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