2018 (7) TMI 2027

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....#39;s Report for financial year ended 31.03.2015. 2) The Applicant Company, for the financial year ended 31.03.2014 made a net profit (profit after tax) of Rs. 4,60, 14,897/- and net profit (profit before tax) of. It was the contention of the Company that it is of the view that the threshold limit of profit in Sec. 135(1) is profit after Tax and hence do not attract provisions of Corporate Social Responsibility (CSR) even if CSR provisions are applicable the average net profit u/s 135(5) is negative and hence no an-mount could be set apart for CSR spending and hence the provisions of Section 135 are not attracted. the ROC, Coimbatore is of the opinion that the Company should comply with the CSR provisions for the financial year 2014-15. ....

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....e Net Profits have to be ascertained. ' 5) The deduction of excess of expenditure over income is permissible only from the Financial Year 14-15 and not prior to that. Thus, the act of the petitioner in deducting the excess of expenditures incurred during the FY 1 1-12 & FY 12-13 from the net profit before tax for the FY 13-14 and the average net profit calculated and arrived post the said deductions, is not recognized as per the Companies Act, 2013. As such the petitioner company's net profit for the FY 13-14 stands at well above the threshold limit mentioned in sec 135(1) of the Companies Act, 2013. 6) The Tribunal observes the following; Section Head note Date of Enforcenment 135 Corporate Social Responsibility 01.04.20....