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TMI Blog2022 (11) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration. Thus, it is clearly seen that there is an obligation on the respondent/assessee to fulfil such responsibility which is not only to take care of his employees but also to rehabilitate the entire area where operations are being carried on by the respective public sector undertaking. The decision rendered in the case of Commissioner of Income Tax vs. Tamil Nadu Tourism Development Corporation Ltd [ 2016 (8) TMI 229 - MADRAS HIGH COURT ] will aid the assessee s case, wherein the expenses incurred by the said assessee for maintenance of Thiruvalluvar statue at Kanyakumari was held to be allowable deduction under Section 37(1) of the Act. It would be immensely beneficial to refer to the decisions of the hon ble Supreme in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofession and not otherwise ? (ii) Whether on the facts and circumstances of the case that the assessee company s claim of CSR expenses being part of Employees Welfare as negotiated under National Coal Wage Agreement from time to time forms part of business expenditure, is bad in law and not in good fait of welfare as substantiated by disallowability of all such expenses under the head CSR as business expenditure through amendment of Section 37(1) of the Income Tax Act, 1961 in Finance Act, 2013 ? (iii) Whether on the facts and circumstances of the case that why all such expenses shall not be disallowed by treating it as Capital Expenditure as it mostly caters to creation of new assets of company like hospitals, schools, drin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Tribunal has noted that similar expenses incurred by another public sector undertaking like that of the respondent/assessee namely, Southern Coal Fields, where relief was granted by the learned Tribunal in the case of Southern Coalfields vs. JCIT reported in 260 ITR (AT) 1. Accordingly, the appeal stood allowed. Aggrieved by the same, the revenue is before us. After elaborately hearing the parties for the parties and carefully perusing the materials placed on record, we fully subscribe to the view taken by the learned Tribunal. We support such conclusion for the following reasons: It is not in dispute that sufficient material was available on the file at the time when the assessment was done by the assessing officer under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. reported in [2020] 121 taxmann.com 82 (Guj.) dismissed the revenue s appeal affirming the relief granted to the assessee therein by the learned Tribunal. In the said case the question was whether the assessee-company, a State Government undertaking, which had incurred expenses towards contribution/donation made to educational institution, trusts, local bodies for discharging its corporate social responsibility was allowable as a deduction under Section 37(1) of the Act. The Hon ble Court, after elaborately considering various decisions on the point held as follows: 10. Thus, the sum and substance of the principle discernible from the above noted decisions is that the concept of business is not static. It has evolved over a perio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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