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TMI Blog2022 (10) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... ily to maintain harmony at the vicinity of the factory area and is not a personal expenditure, further the assessing officer has not doubted genuineness of the expenditure but only on the nature of the expenditure was not incurred for the purpose of business. The assessee has filed the details of CSR expenditure which cannot be overlooked and the AO has accepted such claim and the assessee has made a voluntarily disallowance of CSR expenditure under section 37(1) of the Act in restricting expenses under the statutory obligations of CSR policy. Accordingly, we set-aside the order of the CIT(A) on this disputed issue and direct the AO to delete the addition and allow this ground of appeal in favour of the assessee. Disallowance of claim u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of business. The Learned AO/ CIT (A) did not appreciate that the said expenses claimed were incurred wholly and exclusively for the purpose of the business of the appellant and the expenditure is supported by invoices and vouchers. 4. The Learned AO grossly erred in disallowing certain claims of deduction under Section. 80JJAA of the Act stating that the said claim is covered in appeal filed against the intimation order under Section. 134(1) of the Act. The statement of the Learned AO is factually not correct and the said claim of allowed in the intimation issued under Section. 143(1) of the Act by the Learned AO. The Learned CIT (A) omitted to appreciate this fact. The Learned CIT (A) also omitted to appreciate the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn of income dated on 28.03.2019 with a total income of Rs.14,12,33,870/-. Subsequently, the return of income was selected for complete scrutiny under E- Assessment scheme 2019 on fallowing issues. i) Reduction of income in revised return of claim of refund. ii) Duty drawbacks iii) ICDS compliance and adjustment and (iv) Deduction on account of donation for scientific research. Subsequently the assessing officer has issued notice under Section 143(2) U/sec 142(1) of the Income-tax Act, 1961 along with the questionnaire. In compliance to the notice, the assessee company has submitted the details and information through ITBA portal. The assessing officer(A.O.) on perusal of financial statements found that the assessee has de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirming in addition of claim of expenditure overlooking the fact that the expenditure was incurred over and above the CSR expenditure and doesn t qualified for claim under CSR and form part of business expenditure incurred wholly and exclusively for the business. The Ld. AR explained that an amount of Rs.2,09,214/- was claimed as deduction in the return of income filed. The Ld. AR further emphasized that the assessee has made detailed submissions before the lower authorities explaining the nature of expenditure and substantiated the submissions with the factual paper book and judicial decisions and prayed for allowing appeal. Contra, the Ld. DR supported the order of the CIT(A). 5. We have heard the rival submissions and perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the companies Act 2013 and it doesn t apply to the expenditure incurred in discharge of corporate social responsibility(CSR) on voluntarily basis. We considering the facts, submissions, provisions of the Act and the judicial decisions relied by the Ld. AR find the action of the assessee incurring the expenditure voluntarily to maintain harmony at the vicinity of the factory area and is not a personal expenditure, further the assessing officer has not doubted genuineness of the expenditure but only on the nature of the expenditure was not incurred for the purpose of business. The assessee has filed the details of CSR expenditure which cannot be overlooked and the AO has accepted such claim and the assessee has made a voluntarily disallowa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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