9911796707
TMI Blog2024 (7) TMI 1135X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee do not identify the name of the holder of the bank account or bank number. The contribution receipts were in the name of M/s Invensys India Pvt. Ltd. and the same do not pertain to the assessee company. The evidences furnished by the assessee do not support the claim of the assessee. Assessee clarified that erstwhile name of the company was changed from M/s Invensys India Pvt. Ltd. to present name as evidenced by certificate of ROC showing name change of the assessee company. Assessee also furnished bank statement highlighting two payments out of four payments. AO chose not to make any addition / disallowance, in this regard. However, the proposal made by the Tax Auditor apparently has not been considered and the issue whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. By way of this appeal, the assessee assails invocation of revisionary jurisdiction u/s 263 by Ld. Pr. Commissioner of Income Tax Chennai-3 (Pr. CIT) vide impugned order dated 31-03-2024 in the matter of an assessment framed by Ld. AO u/s. 147 r.w.s 144B of the Act on 21- 03-2022. The grounds taken by the assessee are as under: - 1.1 The order passed by the Principal Commissioner of Income Tax Corporate Circle - 3 ('Ld. PCIT') dated 31 March 2024, under section 263 of the Income-tax Act, 1961 ('the Act'), is bad in law and on facts. 1.2 The PCIT has erred in law and in the circumstances of the case in partly setting aside the order passed under section 147 r.w.s. 144B of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s erred in law by concluding that there was lack of enquiry by the Ld. AO without appreciating that the Ld. AO had conducted detailed inquiries during the course of reassessment proceedings specifically with respect to contribution made to LIC towards superannuation fund. 3 Contribution to Government controlled LIC superannuation fund is an allowable expenditure 3.1 Without prejudice to the above, the Ld. PCIT has failed to appreciate that the contribution made towards superannuation fund to LIC, a Government Controlled Organization, was exclusively for the benefit of the employees wherein the Appellant has no control over such funds and accordingly, such deduction ought to be allowed as a deduction under section 37 of the Act as the same w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereto as per relevant scheme. However, Ld. AO without causing any enquiries, allowed the claim of the assessee which was improper. 5. The assessee defended the assessment order on the ground that twin conditions to invoke the revision u/s 263 were not fulfilled. Another argument was that the issue was specifically examined during the course of reassessment proceedings and therefore, the same could not be examined again. The assessee furnished the required information during reassessment proceedings and Ld. AO completed the assessment after considering all the facts. The assessee also submitted that two views were possible on the issue and accordingly, revision could not be sustained in law. Further it was not a case of lack of enquiry. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ute would be defeated. Accordingly, Ld. AO was directed to disallow the aforesaid payment and re-compute the income of the assessee. Aggrieved, the assessee is in further appeal before us. Our findings and Adjudication 7. The factual matrix is not in dispute. The Tax Audit Report, in From 3CD, has mentioned that certain contribution made by the assessee would be disallowable u/s 40A(9). This was, in fact, one of the reasons to reopen the case of the assessee. In the queries raised by Ld. AO (Page No.58 of paper-book) during re-assessment proceedings, It was objected to by Ld. AO that the bank statement furnished by the assessee do not identify the name of the holder of the bank account or bank number. The contribution receipts were in the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iance has been placed on certain decisions, in this regard allowing similar claim of the assessee. The Ld. AR also submitted that fund went out of control of the assessee and therefore, the deduction thereof could be allowed to the assessee. Considering the same, we modify the directions given in the impugned order and direct Ld. AO to verify the claim of the assessee and examine deductibility of the expenditure. The assessee is directed to substantiate the same. All the issues are kept open. Our adjudication as aforesaid shall not be construed as any expression on the merits of the case. We order so. 11. The appeal stand partly allowed. The stay application has been rendered infructuous and accordingly, dismissed. Order pronounced on 10th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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