2024 (9) TMI 224 - SCH - Income Tax

Deduction u/s 37(1) - expenditure incurred by the respondent/assessee towards Corporate Social Responsibility - as decided by HC 2023 (1) TMI 779 - DELHI HIGH COURT expenditure is not in the nature of capital expenditure - expenditure is laid out or expended wholly and exclusively for the purposes of the business or profession. Deduction qua the expenditure incurred is not of the nature as specified u/s 30 to 36 of the Act. Insofar as the third criterion is concerned, there is no dispute, that the expenditure claimed does not fall under any of the sections referred to in 37(1) of the Act i.e., Sections 30 to 36. As far as the other aspects are concerned, as noted by the Tribunal, in the past, CSR expenses had been allowed as deductible expenditure u/s 37(1). Therefore, the only aspect, which appears to have been agitated before the Tribunal, was that Explanation 2 appended to Section 37(1) was retrospective in nature. This Explanation was inserted, as noted above, by Finance Act, 2014 with effect from 01.04.2015. HELD THAT - We see inadequate explanation for the delayed filing. Accordingly, the Special leave petition stands dismissed on the ground of delay. Pending application(s), if any, shall stand disposed of.