JUDGMENT :

K.R.Shriram, J.

1. Rule. Rule made returnable forthwith. By consent of parties taken up for final hearing.

2. Petitioner, for Assessment Year 2016-17, filed return of income on 29th November 2016 declaring total income of Rs.4860,25,58,663/-. The assessment was completed under Section 143(3) of the Income Tax Act, 1961 (“the Act”) assessing the total income Rs.5163,85,46,552/-.

3. Petitioner received a notice dated 27th March 2021 under Section 148 of the Act stating that there were reasons to believe Petitioner’s income chargeable to tax for AY 2016-17 has escaped assessment within the meaning of Section 147 of the Act. By a communication dated 17th February 2021, Petitioner was provided the reasons for reopening. The same reads as under:

“1. The assessee Bajaj Auto Ltd., having PAN: AADCB2923M is assessed to tax in this charge. In this case return of income was filed on 29.11.2016 declaring total income Rs.48,60,25,58,663/-. The assessment was completed u/s.143(3) of the IT Act assessing the total taxable income of Rs.51,63,85,46,552/-.

2. It is found from the return and the details available on record that, the assessee’s income chargeable to tax has been under assessed on account of following issues:

2.1 Claim of provisions against unascertained liabilities: The assessee claimed year end provisions for Press Including production, and Television under sub-head Advertising and Publicity for Rs.38,26,02,038/- and Rs.16,24,90,310/-respectively and Export Markets under sub-head Advertising expenses for Rs.34,66,34,334/- under the head Advertisement of Note 24 of Other Expenses. This provision of Rs.89,17,26,682/- was made against the unascertained liability which is contingent in nature. Hence, the provision of Rs.89,17,26,682/- was not an allowable expense which is required to be disallowed.

2.2 Claim of excessive deduction u/s.35(2AB) of the Act: The assessee in their computation claimed Rs.6,38,97,55,364/-as deduction u/s 35(2AB) in respect of scientific research as revenue expenditure. The tax auditor in Form 3CD qualified that amount allowable is Rs.6,38,97,55,364/- u/s 35(2AB) and that amount was claimed and accordingly debited to the Profit and loss account. It is however found from the record that, the total amount allowed for weighted deduction @ 200% is Rs.545,47,95,980/-, however the assessee has claimed Rs.638,97,55,364/- which resulted in excess claim of deduction of Rs.93,49,59,384/-. Hence, this excess claim is required to be disallowed.

2.3 Deduction claimed on account of CSR Expenses and Donations:

Assessee’s computation of income revealed that the assessee had added back an amount of Rs.86,72,16,104/-which was debited in the P&L A/c towards CSR expenses. However, these CSR expenses were claimed by the assessee under section 80G of the Act to the extent of Rs.48,56,48,000/-. Thus, the total CSR expenditure of Rs.48,56,48,000/-, which was originally disallowed as CSR expenses was again claimed through the route of 80G deductions in its computation of income which was allowed in completion of assessment. Hence treating the same expense under two different heads would amount to double deduction which was not an allowable deduction claimed by assessee and allowed in assessment, which is required to be disallowed.

2.4 Excess allowance of deduction u/s.80IC of the Act.:

In completing the scrutiny assessment under section 143(3) the deduction u/s 80IC to the extent of Rs. 51,43,22,812/- was disallowed based on apportionment of expenses. It is seen from record that, while computing the disallowable expenses, the figure adopted under heading Expenses disallowed to the extent they are shown under Akurdi column was wrongly taken at Rs.1,26,37,52,949/- as against the actual expense of Rs.1,11,70,46,796/-,which resulted in short apportionment of Rs.14,67,06,153/-. Secondly, expenses on Advertisement, under heading-Expens