BACHHARAJ & CO PRIVATE LIMITED,MUMBAI V. PR COMM. OF INCOME TAX-3, MUMBAI

ITA 2613/MUM/2025

AI Insights

The case involves Bachhraj & Co. Private Limited, which appealed against the order of the Principal Commissioner of Income Tax, Mumbai - 3, concerning the assessment year 2020-21. The primary contention was the PCIT's assumption of jurisdiction under Section 263 of the Income Tax Act, claiming the original assessment was erroneous and prejudicial to the interest of the revenue. The dispute centered on the deduction claimed under Section 80G for donations made from CSR expenditure. The Tribunal noted that the issue was highly debatable, referencing several precedents where CSR expenditure was considered eligible for deduction under Section 80G. The Tribunal concluded that the PCIT's intervention was a mere change of opinion, not sufficient to invoke Section 263.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711730 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Other Referred Cases: Motilal Oswal Securities Ltd. (ITA No. 1795/Mum/2023, order dated 18.08.2023), Allegis Services India Pvt. Ltd. (ITA No. 1693/Beng./2019), JMS Mining Pvt. Ltd. (130 taxmann.com 118, Kolkata Trib.)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATYAPRAKASH R.SINGH; DR
• Assessee Lawyers: KIRIT KAMDAR; AR
• Keywords: Set aside; Difference of opinion; Change of opinion; Corroborative evidences; Revision of order
• Section: 143(3); 142(1); 263; 80G

Judgement Text

"+ | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI ANIKESH BANERJEE, HON’BLE JUDICIAL MEMBER I.T.A. No. 2613/Mum/2025 Assessment Year: 2020-21 Bachhraj & Co. Private Limited 2nd Floor, Bajaj Bhavan 226 J.B. Marg Nariman Point Mumbai - 400021 [PAN: AAACB5589N] Vs Principal Commissioner of Income Tax-3, Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Kirit Kamdar, A/R Revenue by : Shri Satyaprakash R. Singh, CIT D/R सुनवाई की तारीख/Date of Hearing : 23/07/2025 घोषणा की तारीख /Date of Pronouncement: 25/07/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order of the ld. Principal Commissioner of Income Tax, Mumbai - 3 [hereinafter ‘the ld. Pr. CIT’] dated 13/03/2025 pertaining to AY 2020-21. 2. The sum and substance of the grievance of the assessee is that the ld. Pr. CIT erred in assuming jurisdiction conferred upon him by the provisions of Section 263 of the Act and further erred in holding that the assessment dated 27/09/2022 framed u/s 143(3) r.w.s. 144B of the Act is erroneous inasmuch as it is prejudicial to the interest of the revenue. 3. Briefly stated the facts of the case are that the assessee filed its return of income on 01/02/2021 declaring total income at Rs. 83,74,38,910/-. The return was selected for scrutiny assessment and Printed from counselvise.com I.T.A. No. 2613/Mum/2025 2 accordingly statutory notices were issued and served upon the assessee. Vide order dated 27/09/2022, the returned income of the assessee was assessed at Rs. 88,17,67,529/-. Assuming jurisdiction conferred upon him by the provisions of Section 263 of the Act, the ld. Pr. CIT issued showcause notice:- Printed from counselvise.com I.T.A. No. 2613/Mum/2025 3 4. The bone of contention is the claim of deduction u/s 80G of the Act is as the donations are made out of CSR expenditure. Vide notice dated 16/11/2021 u/s 142(1) of the Act, the AO specifically asked the assessee to furnish the details of donations/exemptions and rebate claimed during the year along with supporting documents. Again on 01/08/2022, vide notice issued u/s 142(1) of the Act, the AO sought explanation from the assessee in respect of deduction claimed u/s 80G of the Act amounting to Rs. 1.82 Crores. Vide letter 22/11/2021, assessee furnished the details with supporting evidence in respect of deduction claimed u/s 80G of the Act, therefore, it cannot be said that no enquiry was made by the AO. 5. After giving a thoughtful consideration to the reasons given by the PCIT for assuming jurisdiction u/s 263 of the Act, we are of the considered view that the issue raised by the PCIT is a highly debatable issue. The coordinate benches of the Tribunal have taken a consistent Printed from counselvise.com I.T.A. No. 2613/Mum/2025 4 view that CSR expenditure can be claimed as donation u/s 80G of the Act in the cases of Motilal Oswal Securities Ltd. (ITA No. 1795/Mum/2023, order dated 18.08.2023), Allegis Services India Pvt. Ltd. (ITA No. 1693/Beng./2019), and JMS Mining Pvt. Ltd. (130 taxmann.com 118, Kolkata Trib.). 6. As the issue is highly debatable, any view taken by the AO during the course of the original assessment proceedings has to be considered as a plausible view, and the view taken by the PCIT is nothing but a change of opinion for which jurisdiction u/s 263 of the Act cannot be assumed. Considering the facts of the case in totality, we set aside the order of the PCIT and restore that of the AO dated 27/09/2022 framed u/s 143(3) r.w.s. 144B of the Act. 7. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 25th July, 2025 at Mumbai. Sd/- Sd/- (ANIKESH BANERJEE) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 25/07/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0014ितिलिप अ\u0019ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai Printed from counselvise.com "