Case Law Details
PCIT Vs Security Printing and Mining Corporation of India Ltd (Delhi High Court)
Delhi High Court held that disallowance under section 14A of the Income Tax Act without scrutinizing the accounts of the respondent/assessee unjustified in law and hence liable to be set aside.
Facts- The respondent/assessee, a public sector undertaking engaged in the business of designing and printing bank notes, minting of coins, medallion seals and tokens etc., filed its return of income for A.Y. 2014-15, declaring its income to be Rs.512,53,01,630/-.
The case of the respondent/assessee came under scrutiny and AO passed Assessment Order dated 19.12.2016 u/s. 143(3) of the Act, thereby assessing the concerned income to be Rs.518,41,94,170/- after making additions to the tune of Rs.1,92,91,622/- on account of disallowance made u/s. 14A of the Act and a further amount to the tune of Rs.3,96,00,919/- on account of Corporate Social Responsibility (CSR) expenses claimed by the assessee.
CIT(A) uphold the additions. Whereas, Tribunal allowed the appeal and deleted the additions. Being aggrieved, revenue has preferred the present appeal.
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