Pr. Commissioner of Income Tax-7 vs Pec Ltd.

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

DELHI HIGH COURT
RAJIV SHAKDHER, TARA VITASTA GANJU
Pr. Commissioner of Income Tax-7 – Appellant
Versus
Pec Ltd. – Respondent

Table of Content
1. admission of appeals concerning csr deductions. (Para 1 , 2)
2. revenue's argument against csr expense deductions. (Para 4 , 5)
3. examination of section 37(1) requirements. (Para 6 , 7 , 8)
4. tribunal's ruling on csr expenses applicability. (Para 9 , 10)
5. clarification of csr expenses in legal circulars. (Para 11 , 12)
6. judicial weight of cbdt circulars on revenue decisions. (Para 13 , 14)
7. conclusion favoring assessees on csr deductions. (Para 15 , 16)

JUDGMENT

[Physical Court Hearing/Hybrid Hearing (as per request)]

Rajiv Shakdher, J. (Oral)--A common question of law arises for consideration in the aforementioned appeals.

1.1. Although the matters are at the notice stage, we are inclined to consider the question of law proposed on behalf of the appellant/revenue. Therefore, these appeals are admitted, and the following question of law is framed for consideration:

"Whether in the facts and circumstances of the case, the Income Tax Appellate Tribunal [hereafter referred to as "Tribunal"] erred in allowing deduction of expenses undertaken under the Corporate Social Responsibility (CSR) endeavour under Section 37 of the Income Tax Act, 1961 [in short "Act"]?"

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DELHI HIGH COURTRAJIV SHAKDHER, TARA VITASTA GANJUPr. Commissioner of Income Tax-7 – AppellantVersusPec Ltd. – Respondent

DELHI HIGH COURT
RAJIV SHAKDHER, TARA VITASTA GANJU
Pr. Commissioner of Income Tax-7 – Appellant
Versus
Pec Ltd. – Respondent