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TMI Blog2024 (7) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... rity. We are conscious of the fact that section 246A of the Act has specifically provided for an appeal before the ld. CIT(A) against the intimation issued u/s. 143(1) of the Act where the cause of action had arouse and the assessee ought to have filed an appeal against the same. Even before us, the assessee has challenged only the assessment order passed u/s. 143(3) and not the 143(1) intimation. We, therefore, find no merit in the ground raised by the assessee. Hence, ground no. 1 raised by the assessee is hereby dismissed. Disallowance u/s. 80G towards CSR expenses - AO has rejected the claim of the assessee for the reason that the CSR expenses is not a voluntary donation but is merely a statutory obligation u/s. 135 of the Companies Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or claiming u/s. 80G of the Act could also be an evidencing factor to substantiate that CSR expenditures which falls under the nature specified in section 30 to 36 of the Act are an allowable deduction u/s. 80G of the Act. Assessee is entitled to deduction claimed u/s. 80G of the Act towards the CSR expenditure incurred by it. We, therefore, direct the AO to allow the claim of the assessee subject to the condition that the assessee has satisfied the other requirements warranted u/s. 80G of the Act. We, therefore, direct the ld. A.O. to allow the claim of the assessee subject to the condition that the assessee has satisfied the other requirements warranted u/s. 80G of the Act. - Shri Om Prakash Kant, AM And Ms. Kavitha Rajagopal, JM For th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after making the following addition/disallowance : (i) Rs. 60,08,528/- on account ICDS adjustment. (ii) Rs. 5,81,630/- on account of disallowance u/s. 36(1)(va). 4. The assessee then filed rectification application dated 12.04.2022 which the assessee claims was not disposed of till date. The assessee s case was selected for scrutiny and notice u/s. 143(2) of the Act and 142(1) were duly issued and served upon the assessee. 5. The learned Assessing Officer (ld. A.O. for short) passed the assessment order dated 17.09.2002 u/s. 143(3) r.w.s. 144B of the Act where the ld. A.O. made an addition/disallowance as per the variation computed u/s. 143(1) of the Act which included disallowance of Rs. 15 lacs u/s. 80G of the Act which is 50% of the tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l before the ld. CIT(A) against the intimation issued u/s. 143(1) of the Act where the cause of action had arouse and the assessee ought to have filed an appeal against the same. Even before us, the assessee has challenged only the assessment order passed u/s. 143(3) of the Act and not the 143(1) intimation. We, therefore, find no merit in the ground raised by the assessee. Hence, ground no. 1 raised by the assessee is hereby dismissed. 8. Ground no. 2 pertains to the disallowance of Rs. 15 lacs u/s. 80G of the Act towards CSR expenses. The ld. A.O. has rejected the claim of the assessee for the reason that the CSR expenses is not a voluntary donation but is merely a statutory obligation u/s. 135 of the Companies Act, 2013 read with Schedul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Departmental Representative (ld. DR for short), on the other hand, controverted the said fact and stated that donation to CSR expenses are not voluntary in nature and is a compliance to be made by the assessee as per section 135 of the Companies Act, 2013. The ld. DR reiterated that the Hon'ble Apex Court in the case of PVR Raju (supra) has categorically held that any payment has to be voluntary inorder to be termed as a donation . The ld. DR relied on the orders of the lower authorities. 11. We have heard the rival submissions and perused the materials available on record. The only moot question to be decided here is whether the expenditure towards CSR activities are an allowable deduction u/s. 80G of the Act. The CSR expenses are go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oint out that the intention of the legislature was clear when the same was clarified by the Finance (No.2) Act, 2014 that CSR expenses will not fall under the business expenditure and also there has been an express bar specified in sub clause (iiihk) and (iiihl) of section 80G(2)(a) of the Act that any sum paid by the assessee as donation to Swatch Bharat Kosh and Clean Ganga Fund will not come under the purview of deduction u/s. 80G of the Act subject to certain conditions. This justifies the fact that the other donations specified u/s. 80G of the Act would be entitled to deduction provided the conditions stipulated u/s. 80G of the Act are satisfied. In the present case in hand, the contributions made by the assessee would not fall under t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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