Case Law Details
Vedanta Ltd. Vs ACIT (ITAT Delhi)
At the very outside, the Tribunal in the case of National Small Industries Corporation Limited 175 ITD 601 has held that amendments made to section 37 of the Act vide Finance Act [No. 2] 2014 are prospective in nature and hence would not be applicable to the period prior to the said amendment which is the case of the assessee.
Payments made to church, police station, summits, schools, etc cannot be considered to have been spent on CSR.
Though the amendment to Section 37 of the act may be prospective, but at the same time, assessee had to justify the claim of expenditure being spent on CSR. Details mentioned hereinabove do not justify the claim of expenditure on account of commercial expediency. Considering the claim from all possible angles, we do not find any merit in such claim of expenditure. Disallowance of Rs. 50.37 lakhs stands confirmed. This ground is, accordingly, dismissed.A plain reading of the aforementioned detail show that these expenses are either in the nature of charity or donation. In our considered view, these expenses are not in the nature of CSR. Payments made to church, police station, summits, schools, etc cannot be considered to have been spent on CSR.
FULL TEXT OF THE ITAT JUDGEMENT
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