9911796707
TMI Blog2021 (10) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... ses ignoring the fact that the same has not been Incurred wholly and exclusively for the purpose of business and was rather in the nature of donation, thus passing an order overlooking the finding of facts by the AO as contained in the assessment order." 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. b,5\,41,^99/- made by the AO on account of project expenses merely on the submission of the assessee without appreciating the fact that for any business expenditure to be allowable as per the Income Tax Act the same is required to be incurred wholly and exclusively for the purpose of business. In this case, expenses incurred for the charitable purpose can be termed at best noble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by declared that for the purpose of subsection (1) any expenditure incurred by an assessee in the activities relating to corporate social responsibility referred in section 135 of the companies Act, 2013(18 of 2013) of shall not be deemed to be an expenditure incurred by the assessee for the purpose of the business and profession." 7. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in ignoring the fact that the assessee receives contribution from its promoter IFFCO whose main business is trading in fertilizers." 8. On the facts and in the circumstances of the case, the Hon'ble ITAT at least should have set aside the order to file of AO." 3. The assessee cooperative society is engaged in the trading market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd dismissed the appeal of the revenue. The issue contested herein regarding the addition on account of project expenses was decided in favour of the assessee by the Tribunal in Assessment Year 2010-11& 2011-12 (ITA No. 6831/Del/2014 order dated 06.09.2017 and ITA No. 573/Del/2016 order dated 08.08.2019. The Tribunal in Assessment Year 2011-12 held as under:- "6. We further find that for AY 2008-09 and 2009-10, the Hon'ble Delhi High Court has dismissed the appeals filed by the Revenue vide order dated 31/10/2018. The relevant findings of the Hon'ble Court are reproduced below:- 13. In the facts of the present case, the object and purpose of the respondent-assessee is to engage and work' for social and economic upliftment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the given facts, it would be incongruous for the Revenue to urge that the purpose and goal behind the activities undertaken by the respondent- assessee was not commercial but charity as the intent and motive behind them was not to earn profit. The expenditure incurred to carry out social and economic development would in this background constitute a 'business' or 'commercial' activity undertaken by the respondent- assessee. It would be a contradiction in terms, if we hold that the expenditure would be non-deductible expenditure or expenditure without business expediency. Under section 37 of the Act it does not matter whether or not the expenditure was in the nature of donation or Section 80G of the Act was not attracted. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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