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TMI Blog2022 (3) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... n u/s 80G of the Act in respect of contributions made under CSR scheme, after examining the claim of the assessee that the said payments are eligible for deduction u/s 80G. Claim for deduction of Education Cess including secondary higher education Cess on income tax as deduction while computing the total income - HELD THAT:- Following the above said decision of Kolkata bench of Tribunal in the case of Kanoria Chemicals Industries Ltd [ 2021 (10) TMI 1153 - ITAT KOLKATA ] we hold that payment of education cess including secondary and higher education cess is not allowable as deduction. Accordingly, we reject this ground of the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... t assessment order, asked the assessee to furnish the details of repairs expenses. Since the assessee did not furnish the details, A.O. disallowed 50% of the same amounting to ₹ 1.84 crores treating it as capital in nature. Before Ld. DRP, the assessee furnished the details and hence Ld. DRP asked the A.O. to examine the same and furnish a remand report. The A.O., in the remand proceedings, accepted that the expenses debited under the head "Repairs & Maintenance Expenses" to the tune of ₹ 2.28 crores are revenue in nature. Accordingly he reported in the remand report that the remaining amount of ₹ 1.40 crores are capital in nature. 5.1 The assessee disputed the findings given by the AO in the remand report and hence Ld. DRP further examined the details of capital expenditure reported by the AO. The Ld. DRP noticed that the out of the expenditure of ₹ 1.40 crores reported by the A.O. as capital in nature, a sum of ₹ 64.26 lakhs are actually revenue in nature. Accordingly, the Ld. DRP confirmed the disallowance to the tune of ₹ 75,24,807/- holding it as capital in nature. The assessee is aggrieved by the order passed by the A.O. confirming disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposed on it under the Companies Act and hence the element of "charity" is messing in this payment. Accordingly, he held that the assessee is not eligible for deduction u/s 80G of the Act. However, in respect of contribution made to Prime Minister's Relief Fund amounting to ₹ 6,16,801/-, the AO considered it as allowable as deduction. Accordingly, he disallowed the remaining claim made u/s 80G of the Act amounting to ₹ 15,20,000/-. 7.3 We heard the parties on this issue and perused the record. The Ld. A.R. placed his reliance on the decision rendered by the coordinate bench in the case of Allegis Services India Pvt. Ltd. Vs. ACIT (ITA No.1693/Bang/2019 dated 29.4.2020) and submitted that the co-ordinate bench has held that payment forming part of CSR are eligible for deduction u/s 80G of the Act. 7.4 We heard Ld D.R on this issue and perused the record. We notice that the co-ordinate bench has held in the above said case that the expenses incurred under Corporate Social Responsibility scheme under the provisions of Companies Act are also eligible for deduction u/s 80G of the Act. The relevant discussions made in the above said case are extracted below:- "10. Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility projects under following sections. • Section 30 provides deduction on repairs, municipal tax and insurance premiums. • Section 31, provides deduction on repairs and insurance of plant, machinery and furniture • Section 32 provides for depreciation on tangible assets like building, machinery, plant, furniture and also on intangible assets like know-how, patents, trademarks, licenses. • Section 33 allows development rebate on machinery, plants and ships. • Section 34 states conditions for depreciation and development rebate. • Section 35 grants deduction on expenditure for scientific research and knowledge extension in natural and applied sciences under agriculture, animal husbandry and fisheries. Payment to approved universities/research institutions or company also qualifies for deduction. In-house R&D is eligible for deduction, under this section. • Section 35CCD provides deduction for skill development projects, which constitute the flagship mission of the present Government. • Section 36 provides deduction regarding insurance premium on stock, health of employees, loans or commission for employees, interest on borrow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, Ld.AR submitted that all payments forming part of CSR does not form part of profit and loss account for computing Income under the head, "Income from Business and Profession". It has been submitted that some payments forming part of CSR were claimed as deduction under section 80G of the Act, for computing "Total taxable income", which has been disallowed by authorities below. In our view, assessee cannot be denied the benefit of claim under Chapter VI A, which is considered for computing 'Total Taxable Income". If assessee is denied this benefit, merely because such payment forms part of CSR, would lead to double disallowance, which is not the intention of Legislature. 19. On the basis of above discussion, in our view, authorities below have erred in denying claim of assessee under section 80G of the Act. We also note that authorities below have not verified nature of payments qualifying exemption under section 80G of the Act and quantum of eligibility as per section 80G(1) of the Act." 7.5 Following the above said decision, we direct the A.O. to allow deduction u/s 80G of the Act in respect of contributions made under CSR scheme, after examining the claim of the assessee th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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