2022 (12) TMI 640

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....ed CIT(A) has erred in confirming disallowance of Corporate Social Responsibility (CSR for short) expenses of Rs. 95.10 Lakhs-incurred under the directions of DPE Govt. of India requiring Companies to spend a prescribed percentage of its profits on CSR-and also made mandatory under the Companies Act 2013. 1.2 The learned CIT(A) has erred in confirming disallowance of CSR expenses of Rs. 95.10 lakhs- in utter disregard to the appellate decisions holding that Explanation 2 to section 37(1) of the Act is not applicable to years till A.Y. 2015-16. Ground nos.2 & 3 are general in nature. 3. Learned counsel of the assessee submitted a copy of the Tribunal order dated 25.02.2020 in ITA No. 3647/Del/2017 for A.Y 2013-14 in asse....

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.... such an expense cannot be disallowed for prior assessment years. He further submitted that, various Tribunals have held that these expenses are allowable expenses. In support, Id. counsel placed reliance upon the decision of Delhi Bench in the case of The National Small Industries Corporation Ltd. in ITA No. 1367/Del/2016 and NTPC-SAIL Power Company Pvt. Ltd. vs. ACIT in ITA No.5687 and 6501/Del/2014. 7. Regarding interest u/s. 201(1A), the Id. counsel submitted that, assessee has not claimed the TDS and in fact already fresh form 26AS has been issued which has been rectified and no default has been found. In support, he drew our attention to the revised form 26AS placed at the paper book from pages 67 to 69. Thus, no interest sho....

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.... 2013- 14 cannot be disallowed by invoking the Explanation 2 to Section 37(1) as has been held by the Ld. CIT(A), and therefore, the addition made by the Assessing Officer is directed to be deleted. 5. Respectfully following the order of coordinate bench of ITAT Delhi for A.Y. 2013-14 (supra). We hold that the Explanation 2 to section 37(1) of the Act is applicable from A.Y. 2015-16 and onwards and not prior to the amendment including A.Y. 2014-15, therefore ground no. 1.1 & 1.2 are allowed. Assessee Appeal for A.Y. 2015-16 6. The grounds of appeal raised by the assessee read as under:- "1.1 The Learned CIT(A) has erred in confirming disallowance of Corporate Social Responsibility (CSR for short) expenses of Rs. 84.92 Lakh....