M/S-ORISSA MINING CORPORATION LTD,BHUBANESWAR vs. PR.CIT-1, BHUBANESWAR

It was submitted by the ld. AR that the original assessment came to be completed u/s.143(3) of the Act on 22.12.2016. It was the submission that the ld. Pr.CIT invoked his powers u/s.263 of the Act for the purpose of setting aside the order passed u/s.143(3) of the Act on the ground that AO in respect of closing stock as mentioned in its accounts. It was the submission that the ld. Pr.CIT was of the view that the C&AG of India vide his comments on accounts in the annual report had observed that there was change in inventories and overstatement in its value due to under valuation of closing stock of Daitari Mines. It was the submission that this did not result in any loss of revenue making the assessment order passed u/s.143(3) of the Act erroneous and prejudicial to the interest of revenue insofar as undervaluation of the so-called closing stock has resulted in the same value be adjusted in the opening stock of the next year. This was not affecting the revenue. For this purpose, ld. AR relied on the decision of the coordinate bench of the Tribunal in the case of Caparo Maruti Ltd. Vs. DCIT in order dated 09.08.2017, wherein in para 12 it has been held that if the AO finds that the corresponding adjustment has been done in subsequent year then necessary relief should be granted during the relevant assessment year. It was the submission that the assessee has made adjustment in the opening stock of the subsequent assessment year and there is no C&AG comments on that issue.

In regard to the second issue, it was submitted that the issue was against the action of the ld.AO in allowing the CSR Expenditure incurred by the assessee. It was submitted that the CSR Expenditure was held to be not an allowable expenditure u/s.37(1) of the Act for and from the assessment year 2015-2016. It was the submission that the impugned