2025 (10) TMI 1347

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....ferred to as 'the Act'). 2. The brief facts of the case are that the assessee had filed its return of income for the A.Y. 2020-21 on 30.03.2021 declaring total income of Rs. 18,13,37,26,260/-. The case was selected for scrutiny through CASS. In the course of assessment, the Assessing Officer had made certain additions and the assessment was completed under Section 143(3) of the Act on 29.09.2022 at a total income of Rs. 18,79,08,00,110/-. 3. Aggrieved with the order of the Assessing Officer, the assessee had filed an appeal before the First Appellate Authority which was decided by the Ld. CIT(A) vide the impugned order and the appeal of the assessee was partly allowed. 4. Now, the Revenue is in appeal before us. The following gr....

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....(A) was not correct in deleting the addition as made by the AO. 6. Per contra, Shri Biren Shah, Ld. AR of the assessee submitted that the disallowance under Section 14A of the Act read with Rule 8D can be made only when the assessee had earned any exempt income during the year. He explained that during the year no exempt income was earned by the assessee at all. Further, that assessee's surplus funds far exceeded the investments made and, therefore, no disallowance on account of interest was called for. He further submitted that the provisions of the Act were amended w.e.f. A.Y. 2022-23 and the disallowance under Section 14A read with a Rule 8D can be made, even if no exempt income was earned or accrued, only from that year. The Ld. AR s....

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....o 01.04.2022. Respectively following the judgement of Hon'ble Guwahati High Court, we are of the considered opinion that the Ld. CIT(A) had rightly deleted the addition made under Section 14A of the Act, as the assessee did not earn any exempt income during the year. Accordingly, the order of the Ld. CIT(A) on this issue is upheld. The ground taken by the Revenue is dismissed. 8. The second ground pertains to disallowance of Rs.14,01,31,001/- under Section 80G of the Act in respect of the amounts expended under CSR activity. The assessee had incurred expenditure of Rs.28,27,74,569/- towards CSR activity which was added u/s 37(1) of the Act. However, the assessee had claimed deduction under Section 80G of the Act in respect of CSR expense....