TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 1283
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the interests of the Revenue, without appreciating that the twin condition essential for exercising revisional jurisdiction u/s. 263 were not present. 2.2 The Learned PCIT erred in holding that the assessment order passed by the Assessing Officer is erroneous and prejudicial to the interest of the revenue, without appreciating the fact that mere adopting of one view out of two possible views based on the specific inquiries conducted by the Assessing Officer in respect of the issue under consideration cannot render the order so passed to be erroneous, though the same might be prejudicial to the interests of the revenue. 2.3 The Learned PCIT grossly erred in passing an order u/s 263 despite the fact that the entire facts and circumstances of the case had been explained to & specifically examined by the Assessing Officer during the course of assessment proceedings and the same were, after due application of mind, accepted by the Assessing Officer. 3. Re: Deduction claimed u/s. 80G amounting to Rs. 51,00,000/- disallowed as it pertains to CSR expenditure 3.1 The Learned PCIT grossly erred in disallowing the deduction claimed u/s. 80G on the ground that the donations were ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... voluntary donation are eligible for deduction u/s 80G without appreciating that there is no such condition prescribed under the Act." 3. Briefly stated, the assessee company is engaged in providing remote IT infrastructure management services to its parent company. The assessee had filed its return of income dated 16.12.2020, declaring total income at Rs. 25,44,40,690/-. The assessee's case was selected for complete scrutiny under CASS and notices u/s. 143(2) and 142(1) of the Act were duly issued and served upon the assessee. The reasons for scrutiny selection is for the following issues: i. Claim of any other amount allowable as deduction in Schedule BP. ii. Loss from currency fluctuations. iii. Deduction from total income under Chapter VI-A. 4. The learned Assessing Officer ('ld. A.O.' for short) after duly considering the submission of the assessee, completed the assessment vide order dated 01.09.2022, u/s. 143(3) r.w.s. 144B of the Act, where the ld. AO made no variation to the returned income of the assessee. The ld. PCIT invoked the revisionary jurisdiction u/s. 263 of the Act, for the reason that the assessee has debited Rs. 51,00,000/- towards the expense....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dance with law. The ld. AR contended that the ld. AO only after conducting adequate inquiry has allowed the claim of donation under Chapter VI-A, thereby contending that the assessment order is neither erroneous nor prejudicial to the interest of the revenue as alleged by the ld. PCIT. The ld. AR relied on a catena of decisions in support of his claim. a. Mahansaria Enterprises Pvt. Ltd. vs. PCIT (ITA No. 2158/Mum/2025) b. Societe Generate Securities India Ltd. vs. PCIT (ITA No. 1921/Mum/2023) c. Worley Services India Pvt. Ltd. vs. PCIT (ITA No. 554/Mum/2024) d. Naik Seafoods Pvt. Ltd. vs. PCIT (ITA No. 490/Mum/2021) e. Blue Dart Express Ltd. vs. PCIT (ITA No. 1101/Mum/2024) 7. The learned Departmental Representative ('ld. DR' for short) for the revenue on the other hand controverted the said fact and contended that the assessee has debited a sum of Rs. 51,00,000/- towards CSR activities during A.Y. 2020-21 and Rs. 41,25,000/- during A.Y. 2021-22 which were added back u/s. 37(1) of the Act, while computing taxable income relevant to A.Y. 2020-21 and 2021-22 respectively. The ld. DR further stated that the assessee has made donation in March, 2020 amounting to Rs.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... tabular column, it is evident that the assessee has donated Rs. 51,00,000/- during F.Y. 2019-20 and Rs. 41,25,000/- was debited towards CSR activities on 11.04.2020 where the assessee had claimed deduction u/s. 80G of the Act for the entire donations in A.Y. 2020-21. The ld. AR's argument was that as Section 3 of TOLA was applicable in assessee's case which had extended the time limit till 30.06.2020, the donations paid on 11.04.2020 i.e., during the extended period was liable for claiming deduction in F.Y. 2019-20 relevant to A.Y. 2020-21. The ld. AO has extensively inquired into this issue and had allowed the entire claim of deduction for the year under consideration. Further, the ld. AR has relied on the circular dated 31.03.2021 were on the issue of the date for making various investment/payment for claiming deduction under Chapter VI A-B of the Act including 80C, 80D, 80G donations, etc., the time period has been extended upto 30.06.2020 and the investment and payment can be made upto 30.06.2020 for claiming the deduction under these sections for F.Y. 2019-20. Further, the said circular also states that the donations made to PM CARES Funds shall be eligible for 100% deduction....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ling of appeal, refund applications etc., under the Customs Act, 1962 and rules made thereunder is from 20th March 2020 to 29th June 2020, the same has been extended to30th June 2020. iv. Wherever the last date for filing of appeal etc., relating to Service Tax is from 20th March 2020 to 29th June 2020, the same has been extended to30th June 2020 v. The date for making payment to avail of the benefit under Sabka Vishwas Legal Dispute Resolution Scheme 2019 has been extended to 30th June 2020 thus giving more time to taxpayers to get their disputes resolved. In addition to the extension of time limits under the Taxation and Benami Acts as above, an enabling section has got inserted in the CGST Act, 2017 empowering the Government to extend due dates for various compliances inter-alia including statement of outward supplies, filing refund claims, filing appeals, etc. specified, prescribed or notified under the Act, on recommendations of the GST Council. PMCARES FUND 4. A special fund "Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)" has been set up for providing relief to the persons affected from the outbreak of Corona vi....