ADFACTORS PR PRIVATE LIMITED,MUMBAI vs. ASST. COMMISSIONER OF INCOME- TAX CIRCLE- 2(1)(1), MUMBAI

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ITA 6586/MUM/2025Status: DisposedITAT Mumbai18 December 2025AY 2020-2021Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI PRABHASH SHANKAR, ( (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the matter back to the file of the CIT(A) for fresh adjudication. The CIT(A) was directed to consider the assessee's statement of facts, relied-upon judgments, and provide an adequate opportunity of hearing.

What were the facts?

The assessee claimed a deduction of Rs. 50,45,000/- under Section 80G for CSR expenses. The CIT(A) confirmed the disallowance, and the assessee appealed to the ITAT, citing a lack of opportunity for a hearing and the ignoring of relevant ITAT decisions.

What were the issues?

Whether CSR expenses are eligible for deduction under Section 80G and whether the assessee was denied a proper opportunity of hearing by the lower appellate authority.

Which sections of the Income-tax Act were involved?

Section 80G,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, MUMBAI

Before: SHRI SANDEEP GOSAIN & SHRI PRABHASH SHANKAR

For Respondent: Shri. Surendra Mohan, SR. D.R
Hearing: 16.12.2025

The present appeal has been filed by the assessee challenging the impugned order dated 20.08.2025, passed u/s. 250 of the Income Tax Act, 1961 ('the Act'), by the learned National Faceless Appeal Centre, Delhi, ('NFAC'), for the assessment year 2020-21. The assessee raised the following grounds:

; A.Y. 2020-21 Adfactors PR Private Limited “1. Ground No. I: Disallowance of claim of deduction of Rs. 50,45,000/- u/s 80G of the Act 1.1 On the facts and in the circumstances of the case and in law, the Hon'ble CIT (Appeals) erred in confirming the disallowance of Rs. 50,45,000/- being 50% of CSR expenses of Rs. 1,00,90,000/- claimed as Donation u/s 80G of the Act. 1.2 The Hon'ble CIT (Appeals) further erred in ignoring the recent decision of the Jurisdiction Hon'ble ITAT submitted in the course of hearing and also not providing opportunity of being heard through video conferencing though specifically requested by the Appellant. 1.3 The Appellant prays that, the disallowance of Rs. 50,45,000/- u/s 80G of the Act be deleted.”

None appeared on behalf of the assessee, when the 2. case was called repeatedly, even no application for seeking adjournment has been filed. 3. At the very outset, we noticed that the only issue raised by the assessee in the grounds of appeal relates to challenging the order of Ld. CIT(A) in confirming the disallowance of CSR expenses claimed as donation u/s 80G of the Act.

4.

We have heard the Ld. DR and perused the material placed on record, judgments cited before us and also the orders passed by the revenue authorities. From the records we noticed that assessee has specifically mentioned in ground No. 1.2 that Ld. CIT(A) erred in ignoring recent decision of Jurisdictional ITAT submitted in the course of hearing and also in providing opportunity of being heard through video conferencing though specifically requested by the assessee. We also noticed ; A.Y. 2020-21 Adfactors PR Private Limited that the statement of facts filed before Ld. CIT(A) has been placed on record as Annexure-B, wherein the assessee has raised number of arguments to substantiate its claim and also relied upon the decision of Hon’ble ITAT, Mumbai in the case of M/s Reliance Home Finance Ltd dated 15.11.2021.

5.

Be that as it may, without going into the merits of the claim raised by the assessee, since nobody appeared before us as well therefore, we are of the view that matter be restore back to the file of Ld. CIT(A) to consider the statement of facts and the judgments relied upon in it and deal specifically with each argument raised in the statement of facts raised by the assessee before passing a fresh orders. Needless to mention that the Ld. CIT(A) shall provide adequate opportunity of hearing to the assessee. Since the assessee has not appeared before us even in spite of several calls, therefore a cost of Rs. 5000/- is imposed upon the assessee which shall be deposited in the Prime Minister Relief Fund and a copy of the receipt shall be placed on file before Ld. CIT(A) within 30 days from the date of receipt of this order. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of proceedings.

6.

Before parting, we make it clear that our decision to restore the matter back to the file of the Ld. CIT(A) shall in no way be construed as having any reflection or expression ; A.Y. 2020-21 Adfactors PR Private Limited on the merits of the dispute which shall be adjudicated by the Ld. CIT(A) independently in accordance with law.

7.

In the result the appeal filed by the assessee is allowed for statistical purposes.

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