Aditya Birla Sun Life AMC Ltd. Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that the claim for deduction under section 80G of the Act in respect of Corporate Social Responsibility [CSR] expenditure cannot be denied. Accordingly, deduction claimed is allowed and appeal of revenue dismissed.
Facts- During the assessment proceedings, upon perusal of the computation of income of the assessee, it was observed that the assessee had claimed a deduction of ₹ 65,03,040/- on account of expenses disallowed u/s. 40(a) in the previous year. AO, vide order dated 27.09.2022 passed u/s. 143(3) read with section 144B of the Act, disagreed with the submissions of the assessee and held that on one hand the assessee is claiming that it had disallowed the amount in the last year as it failed to deposit TDS within the due date. On the other hand, the assessee is claiming the amount in this year. Accordingly, the AO held that the amount of ₹ 65,03,040/- is not allowable as a deduction in the year under consideration. CIT(A) dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
Further, the AO disallowed a deduction of ₹ 4,22,50,000/-claimed by the assessee u/s. 80G of the Act on CSR expenditure. CIT(A) allowed the appeal of the assessee. Being aggrieved, revenue has preferred the present appeal.
