AI Drafter 
TaxTMI 
TaxTMI 
2023 (11) TMI 1257
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.... and 143(3B) of the Act ('the assessment order') by the Additional / Joint / Deputy / Assistant Commissioner of Income Tax / Income-tax officer, National e-Assessment Centre ('the Ld. NeAC') on the alleged ground that the assessment order was erroneous in so far as it was prejudicial to the interests of the revenue. 1.2 The Appellant prays that the impugned order be quashed as being bad in law. 2. Ground No. 2: Non-granting of deduction under section 80G of the Act 2.1 On the facts and circumstances of the case and in law, the Ld. PCIT erred in holding that the assessment order was erroneous and prejudicial to the interest of the revenue on the alleged ground that claim for deduction under section 80G in respect of CSR expenses of INR 1, 88, 69,677/- was allowed by the Ld. NeAC without making enquiries warranted under facts and circumstances of the case and provisions of law. 2.2 The Appellant prays that the impugned order on this issue be set aside. 3. Ground No. 3: Other issues 3.1 On the facts and circumstances of the case and in law, the Ld. PCIT erred in relying on clause (a) to Explanation 2 of section 263(....
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.... this appeal before us. 4. We have gone through the order of AO, Notice issued by the Ld. PCIT u/s. 263 of the Act, Order of Ld. PCIT u/s. 263 of the Act and submissions of the assessee. Before deciding the matter on its merits, we deem it fit to examine the matter on technical front also, i.e., whether Ld. PCIT rightly assumed the charge u/s. 263 of the Act or not. To examine this issue we are reproducing the notice issued by the AO u/s. 142(1) of the Act enquiring the very issue under consideration and response of the assessee thereon as under: 5. It is observed that Explanation 2 to section 37(1) of the Act says that any expenditure relatable to the discharge of CSR is not business expenditure and cannot be allowed as such. On this aspect, there is no contradiction of the fact submitted by the assessee that in compliance with this requirement, the assessee does not claim any deduction of such amount spent as CSR under any of the provisions between sections 30 and 36 of the Act, and suo moto disallowed the same by adding it back to the profit and loss account. It is only thereafter the business income of the assessee is computed in accordance with the principles laid down f....
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....0G of the Act is also disallowed, since CSR qualifying donations are not 'voluntary contributions', it will be a double jeopardy in the case of assessee. Assessee cannot be denied the benefit of claim under Chapter VIA of the Act, which is considered for computing 'Total Taxable Income". If assessee is denied this benefit, merely because such payment forms part of CSR, it would lead to double disallowance, which is not the intention of Legislature at all. Legislature on this matter simply dealing with the computation of total income under chapter IVD pertaining to "Income under the head Business and Profession" and not at all dealt with the eligibility of assessee to claim deduction u/s. 80G of the Act, falling in chapter VIA of the Act. It is further observed that genuineness of the transactions and identity of the donees are also not under challenge. All the payments were made through proper banking channel and appropriate donation receipts were also produced before the lower authorities and before us also. 8. As discussed and observed (supra), there is no bar for the assessee to claim benefit u/s. 80G of the Act, falling in Chapter VIA of the Act, we found observa....
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.... the purposes of business and profession. In this present case, for A.Y. 2018-19 you spend a part of the CSR expenses on trust/society and claimed deduction u/s 80G. Accordingly, the CSR expenses spend and claimed as deduction u/s 80G amounting to Rs. 1,88,69,677/- is not allowable and is required to be added back to the total income. Note: If digitally signed, the date of digital signature may be taken as date of document. ROOM NO:629,6th Floor, AAYAKAR BHAVAN, MAHARISHI KARVE ROAD, MUMBAI, Maharashtra, 400020 Email: [email protected], Office Phone:02222001292 Note:- The website address of the e-filing portal has been changed from www.incometaxindiaefiling.gov.in to www.incometax.gov.in. DIN-Document identification No. 183 AAEC52900R-SOCIETE GENERALE SECURITIES INDIA PRIVATE 2018-19 LIMITED ITBA/REVIF/REV1/2021-22/1040234244(1) ii. The failure of the Assessing Officer to make the enquiries which were warranted under the facts and circumstances of the case and under the provisions of law have rendered the assessment order dtd. 17.03.2021 erroneous in so far it is prejudicial to the interest of revenue. 3 In view....
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....ents, as mentioned above, are required to be submitted online electronically in 'E- proceedings' facility through your account in e-Filing website (www.incometaxindiaefiling.gov.in) Yours faithfully, Additional/Joint/Deputy / Assistant Commissioner of Income Tax, National e-Assessment Centre, Delhi AAECS2909R-SOCIETE GENERALE SECURITIES INDIA PRIVATE LIMITED AY. 2018-19 ITBA/AST/F/142(1)/2020-21/1030189373(1) ANNEXURE Please provide bank statement from 01.04.2017 to 31.03.2018 ie. for F.Y. 2017-18 for all the transactions related to donation which have been claimed as deduction under Chapter - VIA of the I.T.Act, 1961. You have claimed that the donation made to Indian Rugby Football Union on 22.03.2018 for Rs. 16,30,000/- but after examination of donation receipt it has been found that the date on the said receipt is 22.03.2017. In this regard please clarify the issue. Yours faithfully, Additional/Joint/Deputy / Assistant Commissioner of Income Tax/ Income-tax Officer, National e-Assessment Centre, Delhi 'à¤à¥‚लो दणà¥à¤¡ INCOME TAX DEPARTMENT SOCIETE GENERALE 1....
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.... India Tel +91-22 6618 1600 Fax +91-22 6618 1630/2493 1021 CIN: U65923MH1995PTC087401 SH Certifie CA Sid M no: 1 SOCIETE GENERALE February 12, 2021 The Assistant Commissioner of Income-tax (e-Verification) National e-Assessment Centre Delhi Dear Sir/Madam, Re: Sub: Societe Generale Securities India Private Limited ('the Assessee Company') PAN: AAECS2909R Previous Year (PY): 2017-18 Assessment Year (AY): 2018-19 Notice no: ITBA/AST/F/142(1)/2020-21/1030189373(1) Reply to notice dated 29th January 2021 under section 142(1) of the Income-tax Act, 1961 (the Act) We are in receipt of the captioned notice via e-mail requesting us to produce certain details / documents on or before 15 February 2021. The copy of the notice is enclosed as Annexure 1. In this connection, we enclose herewith the following details / information, as requested by your goodself: 1. 2. You have claimed that the donation made to Indian Rugby Football Union on 22.03.2018 for Rs. 16,30,000/- but after examination of donation receipt it has been found that the date on the said receipt is 22.03.2017. In this regard ....