2022 (6) TMI 668

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....he captioned appeal has been filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-XXXV, New Delhi ('CIT(A)' in short) dated 25.05.2017 passed by the Assessing Officer under Section 271(1)(c) of the Income Tax Act, 1961 (the Act) concerning AY 2011-12. 2. The grounds of appeal raised by the assessee reads as under: "1. That the Hon'ble CIT(Appeals) is wrong and unj....

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....ty and donation on the ground that same has not been incurred for charitable purposes. On perusal of assessment order, it is noticed that no satisfaction has been formed in the course of assessment for committing any default contemplated under Section 271(1)(c) in respect of such addition. Thus, the imposition of penalty on such addition claimed in the books of account is not justified at the firs....

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....y the interpretation rendered by the Hon'ble Supreme Court on expression 'derived from' and is based on the stance that while the income so reflected in the books may be attributable to the business undertaking but cannot be equated with the expression 'derived from' the manufacturing activity. Thus, the deduction reduced on account of interpretative process cannot per se be equated with furnishin....