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Facts
The assessee claimed deduction under Section 80G, which the Principal Commissioner of Income Tax (PCIT) believed was from CSR expenditure and thus not allowable, initiating proceedings under Section 263. The PCIT believed the original assessment order was erroneous and prejudicial to revenue.
Held
The Tribunal held that the issue of claiming CSR expenditure as donation under Section 80G is a debatable issue. They further noted that the PCIT's view was a change of opinion, which is not a valid basis for assuming jurisdiction under Section 263.
Key Issues
Whether the PCIT can assume jurisdiction under Section 263 based on a change of opinion regarding the allowability of Section 80G deduction on CSR expenditure?
Sections Cited
263, 143(3), 144B, 80G
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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA, HON’BLE & SHRI ANIKESH BANERJEE, HON’BLE
Assessee by : Shri V. Jani, A/R Revenue by : Shri Swapnil Choudhary, Sr. 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 [hereinafter ‘the ld. Pr. CIT’] dated 19/03/2025 framed u/s 263 of the Income-tax Act, 1961 (hereinafter ‘the Act’) pertaining to AY 2021-22.
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 further erred in holding that the assessment order dated 27/12/2022 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.