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Facts
The assessee challenged the final assessment order for AY 2020-21 on three grounds: disallowance of leave encashment u/s 43B by CPC, denial of deduction u/s 80G, and disallowance of CSR expenditure. The assessee contended that the disallowance of CSR expenditure by the AO led to double taxation as they had already added back the amount in their computation of income.
Held
The Tribunal noted that the grounds related to leave encashment and 80G deduction were either infructuous or not pressed. For the CSR expenditure, the Tribunal directed the Ld. AO to verify the assessee's claim of prior self-disallowance and delete the amount if it indeed resulted in double taxation.
Key Issues
Whether the disallowance of CSR expenditure by the AO resulted in double taxation, given the assessee's prior self-disallowance, and whether such double disallowance should be deleted.
Sections Cited
143(3), 144C(13), 144B, 144C(5), 143(1), 43B, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, CHENNAI
Before: HON’BLE SHRI ABY T. VARKEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
सुनवाईकीतारीख/Date of Hearing : 22-01-2025 घोषणाकीतारीख /Date of Pronouncement : 03-02-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2020-21 arises out of final assessment order dated 18.07.2024 passed by Ld. Assessing Officer, (AO) u/s 143(3) r.w.s. 144C(13) r.w.s 144B of the Act pursuant to the directions of Ld. Dispute Resolution Panel-2, Bengaluru (DRP) u/s 144C(5) dated 26.06.2024.
In the first ground, the assessee is aggrieved by disallowance of leave encashment u/s 43B for Rs.367.94 Lacs as made by CPC while processing return of income u/s 143(1). The Ld. AR submitted that the assessee has already preferred a separate appeal against the same and accordingly, this ground has been rendered infructuous. In ground No.3, the assessee is aggrieved by denial of deduction u/s 80G for Rs.1 Lacs. This ground has not been pressed due to smallness of the amount.
In the last ground, the assessee is aggrieved by disallowance of CSR expenditure for Rs.14.99 Crores. The Ld. AR drew attention to the computation of income to submit that this expenditure has already been disallowed by the assessee and Ld. AO has again added the same to the income of the assessee which amounts to double taxation. From Memo of income as placed on Page Nos. 4 & 5 of the paper-book, it could be seen that the assessee has already added back CSR expenditure of Rs.14.99 Crores which supports the aforesaid submission of Ld. AR. Considering the same, we direct Ld. AO to verify the same and delete the double disallowance.
The appeal stand partly allowed for statistical purposes. Order pronounced on 3rd February, 2025 Sd/- Sd/- (ABY T. VARKEY) (MANOJ KUMAR AGGARWAL) �ाियक सद" /JUDICIAL MEMBER लेखा सद" / ACCOUNTANT MEMBER चे1ई Chennai; िदनांक Dated :03-02-2025 DS आदेशकीJितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु:/CIT Madurai. 4. िवभागीय�ितिनिध/DR 5. गाड?फाईल/GF