CIT v. Coats Viyella India Ltd.

DY. C.I.T.1(1), BILASPUR(CG) vs. JSPL,, RAIGARH(C.G)

In the result, the appeal is partly allowed

Bench: : Shri N.S.Saini & Shri Pavan Kumar Gadale, Judical Member Dcit-1(1), Bilaspur- Vs Jspl, 495004 Kharsia Road, Raighagh(Cg) Pan No. : Aabcj 4683 J (Appellant) .. Tsednepser Revenue By : Shri Sanjay Kumar, Dr Assessee By : Shri Mayank Jain, Ar Date Of Hearing : 12/01/2018 Date Of Pronouncement 15/01/2018 आदेश / O R D E R Per Shri N.S.Saini, Am: This Is An Appeal Filed By The Revenue Against The Order Of The Cit(A), Bilaspur, Dated 31.03.2014 For The Assessment Year 2009-2010. 2. The Sole Grievance Of The Revenue Is That The Cit(A) Erred In Deleting The Amount To The Extent Of Rs.2,10,89,707/- Out Of Disallowance Of Rs.3,36,18,098/- Made By The Ao Under The Head Corporate Social Responsibility Expenses. 3. Brief Facts Of The Case Are That The Assessee Is A Domestic Company, A Subsidiary Of Jindal Steel &.Power Limited (Jspl). It Derives Income From Power Generation & Mining. The Company Has Commenced The Commercial Generation Of Thermal Power From Its First Of The Four Units Of 250Mw Each From 08.12.2007. The Assessee Company Filed Its Income Tax Return For The Year Under Consideration Declaring

…imbholi Sugar Mills Ltd. Vs. CIT 45 ITR 125, etc.. Similarly, construction of roads and culverts for providing easier access for its workman and movement of goods are admissible expenditure u/s 37 of the Act. [Relied on CIT Vs. Coats Viyella India Ltd. (2002) 253 ITR 667 (Mad.), Sugar Factory & Oil Mills Pvt. Ltd. Vs. CIT (1980) 125ITR 293 (SC), etc.}. The expenditure under the above heads incurred by the appellant company as a good corporate citizen and as measure of gaining goodwill of the people living in and around its industries through the aforesaid activities are admissible expenditures as held in CIT Vs.…