Jewelex India Private Limited Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that deeming fiction of section 50C cannot be extended while working out the written down value [WDV] for the purpose of claiming depreciation on the block of asset. In other words, legal fiction for substantiating the sale consideration by the Stamp Duty Value created under either section 50 or section 43CA cannot be extended to section 32 for claiming depreciation on the block of the asset. Thus, order set aside.
Facts- Assessee has preferred the present appeal. It is mainly contested that CIT(A) erred in upholding the disallowance of Rs. 4,90,18,859/- on account of deduction claimed u/s. 80G of the Act in respect of donations aggregating to Rs. 10,87,43,245/- paid to eligible institutions/trusts classified as Corporate Social Responsibility expenditure in the books of account. Further, CIT(A) erred in upholding the adjustment made by the Assessing Officer by reducing stamp duty value of Rs. 83,40,922/- instead of actual sale consideration of Rs. 75,16,017/- from block of assets.
Conclusion- Held that issue whether the CSR expenditure is allowable u/s. 80G of the Act or not is no more res integra as the issue is covered in favour of the assesses by a catena of decisions by various co-ordinate Benches of the Tribunal. Accordingly, the impugned appellate order is set aside and the AO is directed to allow the deduction claimed. the result, the ground filed by the assessee is hereby allowed.
