KEI Industries Ltd. Vs. Dy. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, KEI Industries Ltd., filed its return of income for Assessment Year 2018-19 declaring a total income of Rs. 1,91,94,51,330/-. The case was selected for scrutiny through CASS on several issues including stock valuation, default in TDS, ICDS compliance, sales turnover, penalty or fine for law violations, and deductions under Chapter IV-A. During the assessment proceedings, the assessee submitted explanations electronically. The Principal Commissioner of Income Tax (Appeals) issued notices under section 263 of the Act, alleging that the assessee had disallowed CSR expenditure but claimed a deduction under section 80G. The assessee argued that CSR expenses were donations to funds other than those specified, making them eligible for deduction under section 80G.…

Legal Issues

• 1. Whether the Principal Commissioner of Income Tax erred in assuming jurisdiction under section 263 of the Income Tax Act, 1961.
• 2. Whether CSR expenses are eligible for deduction under section 80G of the Act.
• 3. Whether the generation and qualification of scrap were properly examined during the assessment.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Vibrant Advertising Pvt. Ltd. vs. Principal Commissioner of Income Tax

  Ahmedabad bench

• Intermarket India Pvt. Ltd. vs. The PCIT-4, Mumbai

  Mumbai bench

• Jay Chemical Industries Pvt. Ltd. vs. PCIT, Ahmedabad-1

  Ahmedabad bench

• McKinsey Global Capabilities & Services Pvt. Ltd. vs CIT(A)/NFAC, Delhi

  Delhi Bench 'E', New Delhi benchAY 2018-19Allowed

• Jewelex India Private Limited vs Deputy Commissioner of Income Tax, Circle – 14(1)(1)

  Mumbai Bench benchAY 2017-18 & 2018-19Allowed

• Techno Electric & Engineering company Limited Vs. PCIT-2, Kolkata

  Kolkata benchAY 2020-21Allowed