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TMI Blog2021 (12) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... icable prospectively w.e.f. 01/04/2015. Provision made for CSR expenses - .As rightly pointed out by the Id. D/R, this claim of the Id. Counsel for the assessee requires verification by the Assessing Officer inasmuch as if the provision made by the assessee is found to be ascertained liability representing actual expenditure incurred by the assessee on CSR, the same is allowable as deduction as held by this Tribunal in the case of Misrilall Mines Pvt. Ltd. (supra). We, therefore, restore this issue to the file of the Assessing Officer for deciding the same afresh after necessary verification from the relevant record. Appeal of the assessee is treated as allowed for statistical purposes - ITA No. 2409/Kol/2019 And ITA No. 2478/Kol/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd book profit at ₹ 469,28,61,283/- u/s 115JB of the Act. Subsequently, the assessment was reopened by the Assessing Officer and notice u/s 148 of the Act was issued by him on 29/12/2016 in reply to which a letter was filed by the assessee on 13/01/2017 stating therein that the return of income originally filed on 26/09/2012 may be treated as the return filed in response to the notice u/s 148. In the profit and loss account filed by the assessee company along with the return of income, a sum of ₹ 1,62,12,000/- was debited on account of CSR expenses while a further amount of ₹ 2,86,00,000/- was debited on account of a provision for CSR expenses. According to the Assessing Officer, as per Explanation 2 to Section 37(1) inser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sides and also perused the relevant material available on record. It is observed that the expenditure on peripheral development in question was incurred by the assessee as a part of corporate social responsibility as per the scheme framed under the Companies Act. As submitted by the learned counsel for the assessee, the said expenditure was actually incurred by the assessee during the year under consideration and it was not a creation of reserve by debit to the profit and loss account as alleged by the A.O. while treating the same as appropriation of profits. Asa matter of fact, such expenditure on peripheral development as a part of CSR was incurred by the assessee even in the earlier years and the same was allowed by the A.O. even in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xplanation 2 to Section 37 of the Income Tax Act inserted by the Finance Act, 2014, was applicable w.e.f. 01/04/2015, the ld. CIT(A) deleted the disallowance made by the Assessing Officer on account of CSR expenses to the extent of expenditure actually incurred by the assessee company amounting to ₹ 1,62,12,000/-. As regards the claim of the assessee company for the balance CSR expenditure of ₹ 2,86,00,000/- representing a provision made, the ld. CIT(A] held that the same had not been actually incurred by the assessee company. In this regard, he relied on the decision of the Tribunal in the case of Misrilall Mines Pvt. Ltd. (supra) wherein it was held that a creation of reserve for CSR expenses by debiting to the profit and loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icable because the observations made by the Tribunal in the said case were in the context of a reserve created for CSR expenses by debiting to the profit and loss account whereas in the present case, the provision was made by the assessee company for CSR expenses which represented the ascertained liability. In this regard, he has invited our attention to the relevant details furnished at page no. 64 of the paper book to show that expenditure of ₹ 2,86,00,000/- provided by the assessee company represented actual expenditure on CSR expenses. As rightly pointed out by the Id. D/R, this claim of the Id. Counsel for the assessee requires verification by the Assessing Officer inasmuch as if the provision made by the assessee is found to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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