TaxTMI 
TaxTMI 
2023 (8) TMI 1650
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....ASSED BY INVOKING PROVISIONS OF SECTION 263 OF THE ACT IS BAD IN LAW: 1. On the facts and circumstances of the case and in law, Hon'ble Pr. CIT erred in invoking the provisions of section 263 of the Act and setting aside the assessment order passed u/s 143(3) of the Act as erroneous and prejudicial to the interest of the revenue and directing the AO to verify the contentions of the Appellant on disallowance of Corporate Social Responsibility ("CSR") expenditure in the return and to disallow the deduction u/s 80G on donations out of CSR expenditure. 2. The Appellant prays that it be held that the impugned order is neither erroneous nor prejudicial to the interests of the revenue. WITHOUT PREJUDICE TO GROUND NO. I: GROUND NO. ....
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....xpenditure towards corporate social responsibility (CSR) and an amount of Rs. 50,000/- as loss on doubtful debts were debited to the profit and loss account under the head other expenses. However, in the income tax return filed by the assessee the assessee has shown CSR expenditure as Rs.50,376/- and allowance for doubtful debt at Rs.3,30,85,839/- under the head other expenses at item no. 38 in the profit and loss account as a part of the return of income. The Ld. PCIT also noticed that the assessee has further claimed deduction of Rs.1,51,88,545/- u/s 80G of the IT Act. 5. Accordingly, a show cause notice dated 19.03.2021 was issued to the assessee. In response the assessee submitted that there was a typographical error for showing an amo....
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.... u/s 80G in respect of donation made to eligible institutions/trusts when supported by the donation receipts. In this regard, the Ld. Counsel has filed paper book comprising details and copies of documents furnished before the AO during the course of assessment proceedings pertaining to claim of deduction u/s 80G of the IT Act and detail of CSR expenditure which was not claimed as deduction out of the income of the assessee. 8. On the other hand the Learned Departmental Representative (hereinafter "the Ld. DR") supported the order passed u/s 263 of the Act by the Ld. PCIT. 9. Heard both the sides and perused the materials on record. In the income tax return the assessee claimed deduction u/s 80G of the Act amounting to Rs.1,51,88,545/- be....
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....ide further details of the donee organizations along with their eligibility u/s 80G of the Act. Further, vide submission dated 24.03.2021 in response to the show cause notice dated 19.03.2021 issued by the AO, the assessee explained that the CSR expenditure debited in the profit and loss account has already been disallowed by the AO as per the Income Computation and Discloser Standard (ICDS) shown in point A-34 of scheduled BP and computation of income from business or profession in the return of income for the year under consideration. During the course of appellate proceedings before us, the Ld. Counsel has also filed paper book comprising copies of various judicial pronouncements on the issue that the section 263 of the Act cannot be inv....