2022 (10) TMI 756

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....order of the Learned AO to the extent appealed against is against law, equity and justice. 2. The learned CIT (A) grossly erred in dismissing the grounds of appeal, without giving the appellant an opportunity to of being heard. 3. The Learned CIT (A) grossly erred in confirming the disallowance of the claim of business expenditure made under Section 31 (1) of the Act. The Learned CIT (A) ought to have noted that what is covered in Explanation 2 to Sec. 37 (1) of the Act is the CSR expenditure incurred in terms of sec. 135 of the Companies Act 2013 only and not the expenses incurred for the purpose of business. The Learned AO/ CIT (A) did not appreciate that the said expenses claimed were incurred wholly and exclusively for....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s against natural justice and hence the disallowance may kindly be deleted. 5. For these and other ground that may be further adduced at the time of hearing the order of the Assessing Officer requires to be modified. 2. The brief facts of case are that, the assessee company is engaged the business of development, manufacturing, sale and distribution of in-vitro diagnostic reagents and equipment and rendering of maintenance services. The assessee has filed the return of income on 30-11-2018 for the A. Y. 2018-19 disclosing a total income of Rs.14,26,34,740/-. The assessee has filed the revised return of income dated on 28.03.2019 with a total income of Rs.14,12,33,870/-. Subsequently, the return of income was selected for complet....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....income of Rs.14,63,91,798/- and passed the order u/s.143(3) read with section 143(3A) and 143(3B) of the income tax act dated 06.03.21. 3. Aggrieved by the A.O. order, the assessee has filed an appeal with the CIT (A). Whereas, the appellate authority has considered the grounds of appeal, submissions of the assessee, findings of the scrutiny assessment and concurred with the action of the assessing officer and dismissed the assessee appeal. Aggrieved by the CIT(A) order the assessee has filed an appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld. AR of the assessee submitted that the CIT(A) has erred in confirming in addition of claim of expenditure overlooking the fact that the expenditure was incurred over and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....owed in the computation of income. whereas the remaining amount of Rs.2,09,214/- is spent voluntarily and was claimed as deduction of business expenditure in the return of income tax filed which was incurred wholly and exclusively for the purpose of business. The Ld. AR demonstrated that the expenses are duly supported with the information at page 27 to 32 of the paper book. We find Hon'ble ITAT Raipur Bench in the case on ACIT Vs. Jindal Power Ltd. (179 TTJ 736) has held in terms of explanation 2 to Section 37(1) of the Act, the disallowance is restricted to expenses incurred by assessee under the statutory obligation u/s.135 of the companies Act 2013 and it doesn't apply to the expenditure incurred in discharge of corporate social res....