Case Law Details
Castrol India Ltd Vs DCIT (Bombay High Court)
Bombay High Court held that reopening of assessment under section 147 of the Income Tax Act, without any fresh and tangible material, merely on the basis of change of opinion is unsustainable in law.
Facts-
During the year under consideration, Petitioner incurred expenses of Rs.10,54,06,706/- towards Corporate Social Responsibility u/s. 135 of the Companies Act. A dis-allowance was made for the amount of CSR in the return of income in consonance with the Explanation 2 to Section 37 of the Act. Petitioner also claimed deduction of Rs.1,79,41,595/- (being 50% of the aggregate donation) u/s. 80G of the Act as permissible in law.
Assessment order was passed u/s. 143(3) of the Act, which fully allowed the deduction claimed. However, Petitioner received notice u/s. 148 of the Act conveying reasons to believe that income chargeable to tax for the relevant assessment year has escaped assessment and required Petitioner to deliver return for the said assessment year. The AO rejected the objections by the impugned order dated 21st December 2021. Being aggrieved, the present appeal is filed by the assessee.
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