The tribunal clarified that a commissioner cannot revise an AO’s decision on the basis of opinion difference if inquiries were duly made during assessment under section 263.

ORDER

PER PAVAN KUMAR GADALE, JM:

The assessee has filed the appeal against the order of the Pr. Commissioner of Income Tax (Pr.CIT)-2, Mumbai passed u/sec 263 of the Act. The assessee has raised the fallowing grounds of appeal :

On the facts and in the circumstances of the case and in law, the Principal Commissioner of Income-tax- 2 ('Ld. PCIT') Grounds on validity of proceedings under section 263

1. erred in holding that the assessment order dated 8 April 2021 passed under section 143(3) read with section 143(3A) & (3B) of the Income Tax Act, 1961 ('the Act') is erroneous and prejudicial to the interests of the revenue. Grounds on Merits: Allowability of deduction under section 80G of the Act in respect of contributions towards Corporate Social Responsibility ('CSR') of Rs. 48,59,170:

2. erred in directing the Assessing Officer to conduct requisite enquiries in relation to allowability of deduction under section 80G in respect of donations made to eligible institutions and forming part of CSR contributions, and to frame a fresh assessment order accodingly.

3. erred in not appreciating the fact that the provisions relating to disallowance of CSR expenditure have been introduced only in connection with allowability of deduction under section 37(1), and do not apply to allowability of deduction under section 80G of the Act

4. erred in not appreciating the fact that the provisions of section 80G [in clauses (iiihk) and (iiihl)] specifically provide for disallowance of deduction only in respect of certain specific CSR contributions, viz. Swachh Bharat Kosh and Clean Ganga Fund, and thereby deduction is allowable under section 80G of the Act in respect of other eligible CSR contributions..

2. The Brief facts of the case are that, the assessee company is engaged in the business of rendering a full spectrum of engineering consultancy services including feasibility studies, process engineering, details engineering, project management and project series, design and construction services.The assessee has filed the return of income for the A.Y 2018-19 on 30.11.2018 disclosing a total income of Rs.129,92,74,400/-Subsequently the case was selected for scrutiny under the CASS to examine issues (i)Claim of any other amount allowable as deduction in Schedule BP (ii)Double taxation relief u/sec 90/91(iii)Expenses incurred for earning exempt income and (iv) Capital gains/income on sale of property. Subsequently, the Assessing Officer (A.O) has issued notice u/sec 143(2) and u/sec 142(1) of the Act. In compliance to the notice, the assessee has submitted the details and information on 19.01.2021 and 08.02.2021. The AO has perused the Audited financial statements and find that the assessee has entered into an Advance Pricing Agreement (APA) on 18.07.2019 with CBDT covering the assessment year from A.Y 2012-13 to A.Y. 2019-20 and the copy of APA agreement was furnished. The AO has dealt on the facts with respect to information and details submitted. Further the assessee has filed the modified return of income for the A.Y 2018-19 on 30.10.2019 disclosing a total income of Rs. 146,58,08,180/- covering the adjustment of international transactions with its AEs as per APA signed with CBDT against the taxable income declared at Rs. 129,92,74,400/-. Whereas the AO has dealt on the claims made by the assessee u/sec 90/91 of the Act and made disallowance of Rs. 5,44,956/-. Similarly the AO found that the assessee has earned dividend income of Rs.2,42,98,5016/- on the investments in dividend based mutual funds. The AO has dealt and invoked the provisions of Sec.14A r.w.r 8D of the I T Rules and worked out the disallowance u/sec 14A of the Act of Rs.53,92,918/-.Finally the AO has assessed the total income of Rs.147,17,46,060/- and passed the order u/sec 143(3) r.w.s143(3A) & 143(3B) of the Act