M/s Pasupati Acrylon Limited vs. ACIT, Circle 19(1)

Parties Involved

Facts Summary

The assessee, M/s Pasupati Acrylon Limited, is a public limited company engaged in the manufacturing of Acrylic Fibres. The assessee filed its return of income on 17/10/2019 declaring income of Rs. 28,98,24,424/-. The Assessing Officer passed the intimation order u/s 143(1) of the Income-tax Act, 1961 on 18.12.2019 by accepting the return of income filed by the assessee. The assessee subsequently filed an appeal before the CIT(A)-3, Bengaluru, raising grounds that the assessee had failed to claim certain business expenditures in the return filed by it. The CIT(A) held that the claim of business expenses u/s 37 after processing the return of income seems a afterthought and dismissed the appeal.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in law in not allowing the deduction of the prior period expenses of Rs. 3,93,388/-.
• 2. Whether the Ld. CIT(A) erred in law in not allowing deduction of Rs. 81,00,000/- to that extent being the CSR expenses disallowed u/s. 37(1) of the I.T. Act but are allowable u/s 80G of I.T. Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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