9911796707
TMI Blog2019 (2) TMI 1346X X X X Extracts X X X X X X X X Extracts X X X X ..... rein, it has been held that above explanation applies with retrospective effect. Therefore, we hold that for AY 2013- 14 CSR expenditure cannot be disallowed by invoking the explanation 2 to section 37(1) of the Act. In view of this we reverse the order of the lower authorities and direct the ld AO to delete the disallowance of CSR expenses and sustainable development expenses - Decided in favour of assessee. - ITA No. 3736/Del/2018 - - - Dated:- 20-12-2018 - Shri Amit Shukla, Judicial Member And Shri Prashant Maharishi, Accountant Member For the Assessee : Shri Satyajeet Goel, CA For the Revenue : Shri Surender Pal, Sr. DR ORDER PER PRASHANT MAHARISHI, A. M. 1. This is an appeal filed by the assessee against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act was passed on 29.02.2016. The ld AO disallowed CSR expenses of ₹ 15374000/- and sustainable development expenses of ₹ 2562000/-. The total income after certain other disallowances of depreciation was assessed at ₹ 92966110/-. The assessee preferred an appeal before the ld CIT(A) challenging the above disallowance wherein, the ld CIT(A) upheld the disallowance of CSR and sustainable development expenses applying the explanation 2 to section 37(1) of the Act introduced vide Finance Act No. 2 of 2014 w.e.f 01.04.2015. The ld CIT(A) was of the view that CSR expenditure even prior to the amendment are disallowable. He held that the intention of the legislature not to allow such expenses as business expenses always ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the explanation 2 to section 37(1) of the Act. He stated that though it has been introduced w.e.f 01.04.2015 but as same is explanatory and applicable for Assessment Year 2013-14 also. 6. We have carefully considered the rival contentions and also perused the orders of the lower authorities. The assessee is a Govt of India undertaking under Ministry of Water Resources, river development and Ganga rejuvenating and is engaged in providing concept to commissioning services in consultancy and engineering projects. It has incurred the CSR expenditure details of which are given at page 1 to 13 of the paper book. The nature of the activities include development of infrastructure facilities for providing electricity, solar lighting system i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
