TaxTMI 
TaxTMI 
2017 (3) TMI 1233
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.... order passed by A.O. u/s 143(3) is erroneous and prejudicial to the interest of revenue. 3. The learned CIT-2 erred in setting aside the assessment even though due enquiries were made at the time of framing assessment while accepting the claim of expenditure in respect to corporate social responsibility & transmission line expenses. 2. In this case the learned CIT has passed the following order u/s 263 of the I.T. Act : " Assessment in the above case for A.Y. 2010-2011 was completed u] s 143(3) on 22/02/2013 determining total income at Rs.l,54,854.74 lacs. Perusal of records reveal that assessee debited an amount of Rs. 1576.18 lacs to the P&L Account (Schedule-ll) on account of expenditure on corporate social responsibility. While co....
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.....R.K.Shastri, G.M.F'inance and Shri V.L.Narkhede, Senior Manager of WCL, attended and filed written submissions. It is submitted that the expenditure on corporate social ... responsibility has been an issue of debate in earlier years also and orders passed uls 263 of I.T.Act,1961 have been cancelled by the Hon'ble ITAT. With regard to the expenditure on assets not belonging to the company, it is submitted that expenditure is incurred for shifting high tension lines so that work of digging of coal could be started. It is claimed that these expenses are allowable u] s 37( 1) of I.T.Act, 1961. 04. I have gone through the submissions and find that the AO has neither asked any question related to allowability of expenses on corpora....
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....ctually incorrect. As regards the issue of expenditure incurred on corporate social responsibility, learned counsel submitted that the learned CIT in her order has herself observed that out of the expenditure of Rs. 1576.18 lakhs on this account the AO has disallowed Rs. 1092.48 lakhs. Thus learned counsel submitted that the order of learned CIT itself shows that the issue was duly examined by the AO. Further more learned counsel referred to the questionnaire issued by the AO and the assessee's reply during the course of assessment submitted in the paper book whereby this issue was duly examined. Further learned counsel submitted that the issue of community development and tribal welfare expenditure is already covered in favour of the asses....
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....ised her jurisdiction on the ground that the AO has not examined these issues in the course of assessment. Upon examining the records and the paper book submitted by the assessee we find that the AO has duly issued the questionnaire on both the subjects and the assessee has duly replied. In the notice u/s 142(1) dated 04-10-2012 details of both the items has been sought by the AO in point No. 13 and 20 respectively. Submissions by the assessee placed in the paper book clearly demonstrate that assessee has given due details of explanation. Hence there is no question of learned CIT assuming jurisdiction u/s 263 and holding that the concerned expenditure were allowed without examination by the AO. Lack of appreciation of mind by the concerned ....