2022 (11) TMI 982

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nue has raised the following substantial questions of law for consideration: (i) Whether on the facts and circumstances of the case that the expenses incurred on the activities relating to CSR shall not be deemed to be an expenditure u/s 37 of the income Tax Act, 1961 which deals with allow ability of only such expenditure laid out wholly and exclusively for the purpose of business or profession and not otherwise ? (ii) Whether on the facts and circumstances of the case that the assessee company's claim of CSR expenses being part of 'Employees Welfare' as negotiated under National Coal Wage Agreement from time to time forms part of business expenditure, is bad in law and not in good fait of 'welfare' as substantiated by disallowability ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e filed appeal before the Tribunal. On going through the order passed by the learned Tribunal, we find that the Tribunal has made an elaborate exercise to consider the factual matrix and noted that the assessee was bound to comply with the obligation. National Coal Wage Agreement which is a joint bi-partite agreement for the coal industries dated 15th July, 2005. That apart, the learned Tribunal has noted that similar expenses incurred by another public sector undertaking like that of the respondent/assessee namely, Southern Coal Fields, where relief was granted by the learned Tribunal in the case of Southern Coalfields vs. JCIT reported in 260 ITR (AT) 1. Accordingly, the appeal stood allowed. Aggrieved by the same, the revenue is before ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ann.com 333 (Mad.) will aid the assessee's case, wherein the expenses incurred by the said assessee for maintenance of Thiruvalluvar statue at Kanyakumari was held to be allowable deduction under Section 37(1) of the Act. On more or less identical facts the High Court of Gujarat in the case of Commissioner of Income Tax vs. Gujrat Narmada Valley Fertiliser and Chemicals Ltd. reported in [2020] 121 taxmann.com 82 (Guj.) dismissed the revenue's appeal affirming the relief granted to the assessee therein by the learned Tribunal. In the said case the question was whether the assessee-company, a State Government undertaking, which had incurred expenses towards contribution/donation made to educational institution, trusts, local bodies for discha....