2021 (12) TMI 861

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....l/2019, are cross-appeals which are directed against the order of the Id. Commissioner of Income Tax (Appeals) - 23 (hereinafter the 'Id. CIT(A)'), dt. 09/09/2019. 2. The solitary common issue involved in these appeals relates to the disallowance of Rs. 4,48,12,000/- made by the Assessing Officer on account of Corporate Social Responsibility (CSR) expenses which is sustained by the Id. CIT(A) to the extent of Rs. 2,86,00,000/-. 3. The assessee in the present case is a company which is engaged in the business of mining, manufacturing and sale of copper. The return of income for the year under consideration was filed by the assessee company on 26/09/2012 declaring total income of Rs. 487,99,20,280/- under the normal provisions of the Ac....

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.... i.e., Assessment Year 2012-13. This contentions of the assessee company was not found to be acceptable by the Assessing Officer and by relying on the Explanation 2 to Section 37(1), he made a disallowance of Rs. 4,48,12,000/- on account of CSR expenses in the assessment completed u/s 143(3)/148/251 of the Act vide order dt. 13/06/2017. 4. Against the order passed by the Assessing Officer u/s 143(3)/148/251 of the Act, an appeal was preferred by the assessee before the Id. CIT(A) challenging interalia the disallowance of Rs. 4,48,12,000/- made by the Assessing Officer on account of CSR expenses. During the course of appellate proceedings before the Id. CIT(A), reliance was placed on behalf of the assessee company on the decision of the Tri....

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....construction of a block by way of addition to the school building located in a village in the vicinity of mines was incurred for the benefit of its workers and general public. As regards the reliance of the Assessing Officer placed on Explanation 2 to Section 37 of the Income Tax Act, the Raipur Bench of this Tribunal has held in the case ofjindal Power Ltd. (supra) that the said explanation inserted by the Finance Act, 2014 with effect from 01.04.2015 is not retrospective. Keeping in view all these aspects of the matter, we are of the view that the action of the A.O. in disallowing the claim of the assessee for peripheral development expenditure as a part of CSR was not well founded and the Ld. CIT(A) was not justified in confirming the sa....

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....CIT(A) of the disallowance of Rs. 1,62,12,000/- made by the Assessing Officer on account of CSR expenses actually incurred by the assessee, the Id. representatives of both the sides have agreed that the same is squarely covered in favour of the assessee by the decision of this Tribunal in the case of Misrilall Mines Pvt. Ltd. (supra), wherein it was held that deduction claimed by the assessee on account of CSR expenses actually incurred can be disallowed by invoking Explanation 2 to Section 37(1] of the Act, only from Assessment Year 2015-16 as the same was applicable prospectively w.e.f. 01/04/2015. 7. As regards the assessee's appeal involving the disallowance of Rs. 2,86,00,000/- as made by the Assessing Officer and sustained by the....