WORLDQUANT RESEARCH (INDIA) PVT LTD,MUMBAI vs. THE PRINCIPLE CIT-6, MUMBAI

The sole reason for assuming juri iction u/s 263 of the Act is the audit objection by the revenue and audit party in relation to the CSR expenditure disallowed u/s 37(1) of the Act amounting to Rs. 29,95,468/- claimed as donation u/s 80G of the Act amounting to Rs. 14,97,734/-. 4. The ld. PCIT was of the firm belief that allowing the CSR expenditure to be deduction u/s 80G of the Act would create a significant loophole enabling corporations to shift their statutory obligations onto the public exchequer. The ld. PCIT was of the firm belief that the decision of the AO is erroneous on merits as well as the fact that he has not conducted further enquiries. Drawing support from the Finance Bill, 2014, the ld. PCIT, adjudicated by holding that the assessment order passed by the AO is erroneous insofar as it is prejudicial to the interest of the revenue. 5. Having heard the rival submissions, we have carefully perused the orders of the authorities below. 6. We have given a thoughtful consideration to the order of the ld. PCIT. We are of the considered view that the issue raised by the ld. PCIT is a highly debatable issue as the Co-ordinate Benches of the Tribunal have taken a consistent view that CSR expenditure can be claimed as expenditure u/s 80G of the Act in the cases of Motilal Oswal Securities Ltd. (ITA No. 1795/Mum/2023, order dated 18.08.2023), Allegis Services India Pvt. Ltd. (ITA No. 1693/Bang/2019), JMS Mining Pvt. Ltd. [130 taxmann.com 118 (Kolkata Trib.)] and Elan Pharma (India) Pvt. Ltd. vs. PCIT in ITA No. 2419/Mum/2025. I.T.A. No. 3549/Mum/2025

As the issue is highly debatable, any view taken by the AO during the course of original assessment proceedings has to be considered as a plausible view and the view taken by the ld. PCIT, howsoever plausible, is nothing but a change of opinion for which juri iction u/s 263 of the Act cannot be assumed. Considering the facts of the case in totality, we set aside the order of the ld. PCIT and restore that of the AO dated 06/09/2022. 8. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 31st July, 2025 at Mumbai. (ANIKESH BANERJEE) ACCOUNTANT MEMBER

अपीलाथ / The Appellant 2.  थ / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file.