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Facts
The assessee filed its return of income for AY 2020-21, which was selected for scrutiny. The assessment was completed, and the returned income was assessed at a higher figure. The Principal Commissioner of Income Tax (PCIT) invoked Section 263, stating the assessment order was erroneous and prejudicial to the revenue.
Held
The Tribunal held that the issue raised by the PCIT regarding the claim of deduction under Section 80G for CSR expenditure was highly debatable. Therefore, any view taken by the Assessing Officer (AO) during assessment was a plausible view, and the PCIT's view amounted to a change of opinion, for which Section 263 jurisdiction could not be assumed.
Key Issues
Whether the PCIT can assume jurisdiction under Section 263 of the Income Tax Act, 1961, when the issue is debatable and the PCIT's view amounts to a change of opinion, and whether CSR expenditure can be claimed as a donation under Section 80G.
Sections Cited
143(3), 144B, 263, 37(1), 80G, 115JB, 142(1)
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Income Tax Appellate Tribunal, “B” BENCH, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA, HON’BLE & SHRI ANIKESH BANERJEE, HON’BLE
Assessee by : Shri Kirit Kamdar, A/R Revenue by : Shri Satyaprakash R. Singh, CIT D/R सुनवाई की तारीख/Date of Hearing : 23/07/2025 घोषणा की तारीख /Date of Pronouncement: 25/07/2025 आदेश/O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assessee is preferred against the order of the ld. Principal Commissioner of Income Tax, Mumbai - 3 [hereinafter ‘the ld. Pr. CIT’] dated 13/03/2025 pertaining to AY 2020-21.
The sum and substance of the grievance of the assessee is that the ld. Pr. CIT erred in assuming jurisdiction conferred upon him by the provisions of Section 263 of the Act and further erred in holding that the assessment dated 27/09/2022 framed u/s 143(3) r.w.s. 144B of the Act is erroneous inasmuch as it is prejudicial to the interest of the revenue. 3. Briefly stated the facts of the case are that the assessee filed its return of income on 01/02/2021 declaring total income at Rs. 83,74,38,910/-. The return was selected for scrutiny assessment and 2 accordingly statutory notices were issued and served upon the assessee. Vide order dated 27/09/2022, the returned income of the assessee was assessed at Rs. 88,17,67,529/-. Assuming jurisdiction conferred upon him by the provisions of Section 263 of the Act, the ld. Pr. CIT issued showcause notice:-