2019 (2) TMI 1346

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....to the extent of Rs. 1,53,74,000/- and Rs. 25,62,000/- respectively by making reference to Explanation 2 to section 37 even though the same is allowable u/s 37(1) of the Income tax Act, 1961. (ii) That Explanation 2 to section 37(1) inserted vide Finance Act(No.2), 2014 is prospective in nature and has no application to year under reference. (iii) That in any case, the appellant being a government undertaking and expenditure on CSR and SD activities having been incurred in compliance with mandatory guidelines issued by Ministry of Heavy Industries, the claim is in accordance with provisions of section 37(1) of the Act. (iv) That even otherwise, these expenses have direct nexus with business activities and there is no legal basis for a....

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....al with respect to the CSR expenditure and sustainable development expenditure disallowance, the ld AR submitted that above explanation was inserted w.e.f 01.04.2015 and therefore, same is not applicable to Assessment Year 2013-14. He submitted that the issue is squarely covered by the decision of the coordinate bench in ITA NO. 6794/Del/2014 for Assessment Year 2011-12 dated 02.04.2018 and ITA NO. 123/Del/Cochi/2017 for Assessment Year 2012-12 dated 11.06.2018. The ld AR submitted the paper book stating that nature and expenditure of CSR and sustainable development activities undertaken. The CSR guidelines issued by Ministry of Heavy Industries and Public Enterprises dated 21.12.2010 were also submitted. The assessee also submitted the gu....