Adani Power Ltd Vs PCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that revisionary order passed under section 263 of the Income Tax Act in the name of non-existent entity (amalgamated company) is liable to be quashed. Accordingly, the appeal of the assessee is allowed.
Facts- PCIT observed that on examination of assessment records, it was noticed that assessee had debited a sum of Rs. 1.47 crores on account of CSR activities in the Profit & Loss Account. However, as perused of the computation of income filed by the assessee, Ld. PCIT observed that only an amount of Rs. 47,80,840/- was added back to the total income, for the year under consideration. The PCIT observed that the case of the assessee was assessed as a business entity and therefore, as per provision of Section 37(1) of the Act, the whole of CSR expenses amounting to Rs. 1.47 crores should have been disallowed. Therefore, PCIT held that the excess amount of Rs. 99,10,385/- debited on account of CSR expenses was required to be disallowed by the Assessing Officer and failure to do so made the assessment order as being erroneous in so far as prejudicial to the interest of the Revenue. Being aggrieved, the present appeal is filed by the assessee.
