Case Law Details
National Building Construction Corporation Ltd. Vs Add. CIT (ITAT Delhi)
In the instant case before us also, the expenses have been incurred on the direction of the relevant Ministry / Government of India. Further, neither the Assessing Officer nor the learned DR has rebutted the contention of the assessee that expenses have been incurred for enhancing brand image of the company which are wholly and exclusively for the purpose of the business of the assessee. Both the lower authorities have disallowed the expenses only on the ground that Explanation -2 is clarificatory and retrospective in nature. Thus, respectfully following the finding of the Tribunal(supra) that said Explanation -2 is prospective in nature, we hold that expenses incurred on corporate social responsibility in the year under consideration i.e. AY 2014-15, cannot be disallowed invoking Explanation-2 to section 37(1) of the Act. The ground No. 2 of the appeal of the assessee is accordingly allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is directed against order dated 26/03/2018 passed by the Ld. Commissioner of Income- tax (Appeals)-28, New Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2014-15, raising following grounds:
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