DCIT 2(3), MUMBAI V. TATA STEEL LTD, MUMBAI

ITA 5432/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8594 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2005-2006
• Appeal Filed On: 27-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 80G; 147; 148; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH E ,MUMBAI BEFORE SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO.5432/MUM/2014 FOR (ASSESSMENT YEAR : 2005-06 ) DCIT-2(3), ROOM NO. 552, 5 TH FLOOR, AAYAKAR BHAVAN, M. K. ROAD, MUMBAI-400020 VS. M/S. TATA STEEL LTD. BOMBAY HOUSE, 24, HOMI MODI STREET, FORT, MUMBAI-400001. PAN: AAACT2803M (APPELLANT) (RESPONDENT) APPELLANT BY : SH. B.S. BIST -DR RESPONDENT BY : SH. DINESH VYAS ADVOCATE.) DATE OF HEARING : 24.01.2017 DATE OF PRONOUNCEMENT : 08.02.2017 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JM: 1. THIS APPEAL BY REVENUE U/S 253 OF THE INCOME-TAX AC T (ACT) IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS) [ FOR SHORT THE CIT(A)] -6 MUMBAI DATED 13.05.2014 FOR ASSESSMENT YEAR (AY) 20 05-06. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE-COMPA NY IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF IRON AND STEEL PRODUCTS, FILED ITS RETURN OF INCOME FOR RELEVANT AY ON 31.10.2005 DECLARING INCOME OF RS. 5029,51,33,97 5/-. THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT ON 26.12.2018 ASSES SING THE INCOME AT RS. 5085,26,54,120/-. IN THE RETURN OF INCOME, THE ASSE SSEE CLAIMED THE DEDUCTION U/S 80GGB OF RS. 3.5 CRORE REPRESENTING THE AGGREGATE A MOUNT CONTRIBUTED TO THE ELECTORAL TRUST. THE TRUST WAS ESTABLISHED BY TAT A GROUP FOR DISTRIBUTION OF CONTRIBUTION RECEIVED BY TRUST FROM ANY PERSON TO P OLITICAL PARTIES. IN THE ASSESSMENT ORDER PASSED U/S 143(3) OF THE ACT, THE DEDUCTION CLAIMED U/S 80GGB WAS ALLOWED. SUBSEQUENTLY, THE RETURN OF INCOME WAS RE-OPENED U/S 147 OF THE ACT. NOTICE U/S 148 WAS ISSUED TO THE ASSESSEE ON 29.03. 2012. THE NOTICE U/S 148 WAS 2 ITA NO. 5432 /M/2014 M/S . TATA STEEL LTD. ISSUED ON THE GROUND THAT THE DEDUCTION U/S 80GGB W AS WRONGLY ALLOWED TO THE ASSESSEE. THE ASSESSEE FILED OBJECTION TO THE RE-OP ENING OF THE COMPLETED ASSESSMENT. THE OBJECTION OF ASSESSEE WAS REJECTED BY AO. THE A SSESSING OFFICER (AO) COMPLETED THE RE-ASSESSMENT PROCEEDING ON 07.03.201 5 AND PASSED ASSESSMENT ORDER PASSED U/S 143(3) R.W.S. 147. THE AO WITHDRAWN TH E DEDUCTION U/S 80GGB. ON APPEAL BEFORE THE LD. CIT(A), THE DEDUCTION WAS ALL OWED. THUS, BEING AGGRIEVED BY THE ORDER OF LD. CIT(A), THE REVENUE HAS FILED THE PRESENT APPEAL BEFORE US. THE ASSESSEE HAS ALSO FILED AN APPLICATION UNDER RULE 2 7 OF INCOME-TAX (APPELLATE TRIBUNAL) RULES, 1963 TO ON VARIOUS GROUNDS AS PLEA DED IN THE APPLICATION. 3. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE ( DR) FOR THE REVENUE AND LD. AUTHORIZED REPRESENTATIVE (AR) FOR ASSESSEE AND PER USED THE MATERIAL AVAILABLE ON RECORD. THE LD. DR FOR REVENUE SUPPORTED THE ORDER OF AO. THE LD. DR FOR THE REVENUE TO BUTTRESS HIS SUBMISSION ARGUED THAT ASSE SSEE DONATED A SUM OF RS. 3.5 CRORE TO ITS GROUP CONCERN I.E. ELECTORAL TRUST. THE ELECTORAL TRUST IS NOT THE POLITICAL PARTIES. THE LEGISLATURE HAS NOT USED THE WORD ELECTORAL TRUST WHILE INSERTING THE PROVISION OF SECTION 80GGB OF THE ACT IN THE YEAR 2003. THE WORD ELECTORAL TRUST WAS FOR THE FIRST TIME INSERTED A ND DEFINED IN THE ACT W.E.F. 01.04.2010 AND THUS, ADMITTEDLY THE SAME WAS NOT PE RTAINING TO THE YEAR UNDER CONSIDERATION AND THE CLAIM OF ASSESSEE FOR CONTRIB UTION TO ELECTORAL TRUST WAS NOT ALLOWABLE. THE LD. DR FOR THE REVENUE PRAYED THAT ORDER OF LD. CIT(A) MAY BE SET- ASIDE BY RESTORING THE ORDER OF AO. ON THE OTHER HA ND, LD. AR OF THE ASSESSEE ARGUED THAT ASSESSMENT U/S 143(3) WAS COMPLETED ON 26.12.2 008. THE NOTICE U/S 148 WAS ISSUED ONLY ON 29.03.2012. THE RE-OPENING OF THE AS SESSMENT WAS DONE BEYOND THE FOUR YEARS FROM THE END OF RELEVANT AY. THE RE-OPEN ING IS BAD-IN-LAW IN ABSENCE OF ANY MATERIAL TO SHOW THAT THERE IS FAILURE ON THE P ART OF ASSESSEE TO DISCLOSE FULLY AND TRULY ALL MATERIAL FACTS. THE RE-OPENING WAS DONE B EYOND THE FOUR YEARS FROM THE END OF RELEVANT AY IN ABSENCE OF ANY NEW OR ADDITIONAL MATERIAL BEFORE THE AO. THE AO WAS NOT JUSTIFIED IN DISALLOWING THE CLAIM U/S 80GG B FOR CONTRIBUTION OF RS. 3.5 CRORE MADE TO ELECTORAL TRUST FOR ONWARD CONTRIBUTI ON TO THE POLITICAL PARTIES, WHICH WAS ALLOWED TO THE ASSESSEE IN THE ORIGINAL ASSESSM ENT COMPLETED U/S143(3). THE ASSESSEE OBJECTED THE RE-OPENING OF THE CONCLUDED A SSESSMENT AND THE OBJECTION OF ASSESSEE WAS OVERRULED IN A MECHANICAL MANNER, THE AO WAS NOT JUSTIFIED IN 3 ITA NO. 5432 /M/2014 M/S . TATA STEEL LTD. DISALLOWING THE CLAIM U/S 80GGB. THE LD AR FOR ASS ESSEE INVITED OUR ATTENTION TO THE EXPLANATION WITH SECTION 80GGB, WHEREIN THIS SECTION REFERS TH AT FOR THE PORPOSE OF THIS SECTION, THE WORD CONTRIBUTE WITH ITS GRA MMATICAL VARIATION HAS THE MEANING AS GIVEN IS SECTION 293A OF THE COMPANIES ACT. AC CORDINGLY, THE SECTION 293AOF COMPANIES ACT PERMITS THE CONTRIBUTION TO ANY POLIT ICAL PARTIES BY A COMPANY DIRECTLY OR INDIRECTLY. HENCE, BY VIRTUE OF WHICH T HE CONTRIBUTION TO THE ELECTORAL TRUST IS INCLUDED U/S 80GGB OF THE ACT. THE LD. CIT (A) APPRECIATED THE FACT OF THE CASE IN A CORRECT PERSPECTIVE AND GRANTED THE RELIE F. THE LD. AR OF THE ASSESSEE FULLY SUPPORTED THE ORDER OF LD. CIT(A). THE LD. AR OF T HE ASSESSEE FURTHER ARGUED THAT WHILE PASSING THE ASSESSMENT ORDER U/S 143(3) OF TH E ACT, THE AO MADE THE PROPER ENQUIRIES BEFORE ALLOWING THE DEDUCTION. THE DEDUCT ION WAS ALLOWED AFTER FULL SATISFACTION. THE LD. AR OF THE ASSESSEE ARGUED THA T IN SCHEDULE-F ATTACHED WITH THE STATEMENT OF TOTAL INCOME, THE ASSESSEE HAS DISCLOS ED THE DEDUCTION U/S 80GGB OF RS. 3.5 CRORE. DURING THE ORIGINAL ASSESSMENT PROCE EDING, THE ASSESSEE SUBMITTED LETTER DATED 31.10.2015 DISCLOSING THE DETAILS OF D EDUCTION CLAIMED U/S 80G AND 80GGB AS PER PARAGRAPH NO. XII OF LETTER DATED 31.1 0.2005. RS. 3.5 CRORE WAS DULY DEBITED IN THE COMPUTATION OF INCOME (PAGE 21 AND 2 2 OF PB). THE AMOUNT WAS DULY REFLECTED IN THE AUDITORS REPORT (PAGE 27 TO 29 OF PB). THE LD. AR FURTHER SUBMITTED THAT ALL THESE DETAILS AND EVIDENCES WERE DULY SUPPLIED TO THE AO BEFORE PASSING THE ORDER U/S 143(3) ON 26.12.2008 AND THE ASSESSEE WAS GRANTED DEDUCTION U/S 80GGB OF THE ACT. IN SUPPORT OF HIS SUBMISSION THAT THE RE-OPENING IS INVALID FOR VARIOUS REASONS, THE LD. AR OF THE ASSESSEE RELI ED UPON THE FOLLOWING DECISIONS : 1. CIT V BHANJI LAVJI [1971] 79 ITR 582 (SC) 2. CIT V KELVINATOR OF INDIA LTD [2002] 256 ITR 1 (DEL ) (FB) 3. CIT V KELVINATOR OF INDIA LTD [2010] 320 ITR 561 (S C) 4. ASSOCIATED STONE INDUSTRIES (KOTAH) LTD V CIT [1997 ] 224 ITR 560 (SC) 5. CONSOLIDATED PHOTO & FINVEST LTD V ACIT [2006] 281 ITR 394 (DEL) 6. KLM ROYAL DUTCH AIRLINES V ADIT [2007] 294 ITR 310 (DEL) 7. CIT V EICHER LTD [2007] 294 ITR 310(DEL) 8. RANBAXY LABORATORIES LTD V DCIT [2013] 351 ITR 23 ( DEL) 9. 3I INFOTECH LTD V CIT [2010] 329 ITR 257 (BOM) 10. ACIT V ICICI SECURITIES PRIMARY DEALERSHIP LTD [200 2] 348 ITR 299 (SC) 11. BEDMUTHA INDUSTRIES LTD V DCIT [2013] 87 DTR 305 (B OM) 12. TITANOR COMPONENTS LTD V ACIT [2012] 342 ITR 183 (B OM) 13. ASIAN PAINTS LTD V DCIT [2009] 308 ITR 195 (BOM) 14. HINDUSTAN LEVER LTD V R B WADKAR, ITO [2004] 268 IT R 332(BOM) 15. NDT SYSTEMS V ITO [2014] 363 ITR 603 (BOM) 16. JOHRI LAL (HUF) V CIT [1973] 88 ITR 439 (SC) 4 ITA NO. 5432 /M/2014 M/S . TATA STEEL LTD. 17. CHHUGAMAL RAJPAL V S P CHALIHA [1971] 79 ITR 603 (S C) 18. CENTRAL INDIA ELECTRIC SUPPLY CO. LTD V ITO [2011] 333 ITR 237 (DEL) 19. UNITED ELECTRICAL CO (P) LTD V CIT [2002] 258 ITR 3 17 (DEL) 20. GERMAN REMEDIES LTD V DCIT [2006] 287 ITR 494 (BOM) THE LD. AR OF THE ASSESSEE FILED THE COPY OF ALL TH E DECISIONS IN THE FORM OF LEGAL PAPER BOOK. 4. WE HAVE CONSIDERED THE RIVAL CONTENTION OF THE PART IES AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. WE HAVE ALSO PERUSED DOCUMENT S SUBMITTED BEFORE US IN THE FORM OF PB (DOCUMENTS) AND THE PB (LEGAL). THE AO R E-OPENED THE ASSESSMENT U/S 147 ON THE GROUND THAT ASSESSEE WAS WRONGLY GRANTED THE DEDUCTION U/S 80GGB IN RESPECT OF ITS DONATION TO ELECTORAL TRUST. THE ASS ESSEE OBJECTED TO THE RE-OPENING OF THE COMPLETED ASSESSMENT. THE OBJECTION OF THE ASSE SSEE WAS REJECTED AND AO COMPLETED THE ASSESSMENT U/S 143(3) R.W.SE 147 AND DISALLOWED THE DEDUCTION, WHICH WAS ORIGINALLY ALLOWED ASSESSMENT ORDER U/S 143(3) OF THE ACT. BEFORE THE LD. CIT(A), THE ASSESSEE AGITATED THE ACTION OF AO, ON THE GROUND THAT RE-OPENING WAS INVALID AND THE DISALLOWANCE U/S 80GGB OF THE ACT. THE GROUND WITH REGARD TO RE- OPENING OF THE ASSESSMENT WAS REJECTED BY LD CIT (A ). HOWEVER, THE GROUNDS WITH REGARD TO THE DISALLOWANCE OF CLAIM U/S 80GGB WAS A LLOWED BY THE LD. CIT(A). THE ASSESSEE HAS NO OCCASION TO FILE THE APPEAL AGAINST THE ORDER OF LD. CIT(A), AS ULTIMATELY THE ASSESSEE SUCCEEDED ON THE MERIT OF T HE APPEAL. ON SERVICE OF NOTICE OF APPEAL BY REVENUE, THE ASSESSEE HAS FILED APPLICATI ON UNDER RULE 27 OF THE INCOME TAX (APPELLATE TRIBUNAL) RULES, 1963 FOR SUPPORTING OF THE ORDER APPEALED. FOR PROPER APPRECIATION OF LEGAL POSITION WE MAY REFER SECTION 80GGB, WHICH WAS INSERTED W.E.F. 11.09.2003, WHICH MAY BE READ AS UN DER: 80GGB. IN COMPUTING THE TOTAL INCOME OF AN ASSESSE E, BEING AN INDIAN COMPANY, THERE SHALL BE DEDUCTED ANY SUM CONTRIBUTE D BY IT IN THE PREVIOUS YEAR TO ANY POLITICAL PARTY. EXPLANATION.-FOR THE REMOVAL OF DOUBTS, IT IS HEREB Y DECLARED THAT FOR THE PURPOSES OF THIS SECTION, THE WORD 'CONTRIBUTE', WI TH ITS GRAMMATICAL VARIATION, HAS THE MEANING ASSIGNED TO IT UNDER SECTION 293A O F THE COMPANIES ACT, 1956 (1 OF 1956). WE MAY ALSO REFER SECTION 293A OF COMPANIES ACT AS UNDER: 293A. (1) NOTWITHSTANDING ANYTHING CONTAINED IN ANY OTHER PROVISION OF THIS ACT- (A) NO GOVERNMENT COMPANY; AND 5 ITA NO. 5432 /M/2014 M/S . TATA STEEL LTD. (B) NO OTHER COMPANY WHICH HAS BEEN IN EXISTENCE FO R LESS THAN THREE FINANCIAL YEARS, SHALL CONTRIBUTE ANY AMOUNT OR AMOUNTS, DIRECTLY OR INDIRECTLY , (I) TO ANY POLITICAL PARTY; OR (II) FOR ANY POLITICAL PURPOSE TO ANY PERSON. (2) A COMPANY, NOT BEING A COMPANY REFERRED TO IN C LAUSE (A) OR CLAUSE (B) OF SUB-SECTION (1) MAY CONTRIBUTE ANY AMOUNT OR AMOUNT S, DIRECTLY OR INDIRECTLY , (A) TO ANY POLITICAL PARTY; OR (B) FOR ANY POLITICAL PURPOSE TO ANY PERSON: PROVIDED THAT THE AMOUNT OR, AS THE CASE MAY BE, TH E AGGREGATE OF THE AMOUNTS WHICH MAY BE SO CONTRIBUTED BY A COMPANY IN ANY FIN ANCIAL YEAR SHALL NOT EXCEED FIVE PER CENT OF ITS AVERAGE NET PROFITS DET ERMINED IN ACCORDANCE WITH THE PROVISIONS OF SECTIONS 349 AND 350 DURING THE THREE IMMEDIATELY PRECEDING FINANCIAL YEARS. EXPLANATION - WHERE A PORTION OF A FINANCIAL YEAR O F THE COMPANY FALLS BEFORE THE COMMENCEMENT OF THE COMPANIES (AMENDMENT) ACT, 1985 , AND A PORTION FALLS AFTER SUCH COMMENCEMENT, THE LATTER PORTION SHALL B E DEEMED TO BE A FINANCIAL YEAR WITHIN THE MEANING AND FOR THE PURPOSES, OF TH IS SUB-SECTION: PROVIDED FURTHER THAT NO SUCH CONTRIBUTION SHALL BE MADE BY A COMPANY UNL ESS A RESOLUTION AUTHORIZING THE MAKING OF SUCH CONTRIBUT ION IS PASSED AT A MEETING OF THE BOARD OF DIRECTORS AND SUCH RESOLUTION SHALL, S UBJECT TO THE OTHER PROVISIONS OF THIS SECTION, BE DEEMED TO BE JUSTIFICATION IN L AW FOR THE MAKING AND THE ACCEPTANCE OF THE CONTRIBUTION AUTHORIZED BY IT. (3) WITHOUT PREJUDICE TO THE GENERALITY OF THE PROV ISIONS OF SUB-SECTIONS (1) AND (2),- (A) A DONATION OR SUBSCRIPTION OR PAYMENT CAUSED TO BE GIVEN BY A COMPANY ON ITS BEHALF OR ON ITS ACCOUNT TO A PERSON WHO, TO IT S KNOWLEDGE, IS CARRYING ON ANY ACTIVITY WHICH, AT THE TIME AT WHICH SUCH DONATION OR SUBSCRIPTION OR PAYMENT WAS GIVEN OR MADE, CAN REASONABLY BE REGARDED AS LI KELY TO AFFECT PUBLIC SUPPORT FOR A POLITICAL PARTY SHALL ALSO BE DEEMED TO BE CO NTRIBUTION OF THE AMOUNT OF SUCH DONATION, SUBSCRIPTION OR PAYMENT TO SUCH PERS ON FOR A POLITICAL PURPOSE; (B) THE AMOUNT OF EXPENDITURE INCURRED, DIRECTLY OR INDIRECTLY, BY A COMPANY ON ADVERTISEMENT IN ANY PUBLICATION (BEING A PUBLICATI ON IN THE NATURE OF A SOUVENIR, BROCHURE, TRACT, PAMPHLET OR THE LIKE) BY OR ON BEH ALF OF A POLITICAL PARTY OR FOR ITS ADVANTAGE SHALL ALSO BE DEEMED, - (I) WHERE SUCH PUBLICATION IS BY OR ON BEHALF OF A POLITICAL PARTY, TO BE A CONTRIBUTION OF SUCH AMOUNT TO SUCH POLITICAL PARTY , AND (II) WHERE SUCH PUBLICATION IS NOT BY OR ON BEHALF OF BUT FOR THE ADVANTAGE OF A POLITICAL PARTY, TO BE A CONTRIBUTION FOR A POLITIC AL PURPOSE TO THE PERSON PUBLISHING IT. 6 ITA NO. 5432 /M/2014 M/S . TATA STEEL LTD. (4) EVERY COMPANY SHALL DISCLOSE IN ITS PROFIT AND LOSS ACCOUNT ANY AMOUNT OR AMOUNTS CONTRIBUTED BY IT TO ANY POLITICAL PARTY OR FOR ANY POLITICAL PURPOSE TO ANY PERSON DURING THE FINANCIAL YEAR TO WHICH THAT ACCOUNT RELATES, GIVING PARTICULARS OF THE TOTAL AMOUNT CONTRIBUTED AND THE NAME OF THE PARTY OR PERSON TO WHICH OR TO WHOM SUCH AMOUNT HAS BEEN CONTRIBUTED. (5) IF A COMPANY MAKES ANY CONTRIBUTION IN CONTRAVE NTION OF THE PROVISIONS THIS SECTION, - (A) THE COMPANY SHALL BE PUNISHABLE WITH FINE WHICH MAY EXTEND TO THREE TIMES THE AMOUNT SO CONTRIBUTED; AND (B) EVERY OFFICER OF THE COMPANY WHO IS IN DEFAULT SHALL BE PUNISHABLE WITH IMPRISONMENT FOR A TERM WHICH MAY EXTEND TO THREE Y EARS AND SHALL ALSO BE LIABLE TO FINE. [EXPLANATION.- FOR THE PURPOSES OF THIS SECTION, 'P OLITICAL PARTY' MEANS A POLITICAL PARTY REGISTERED UNDER SECTION 29A OF THE REPRESENT ATION OF THE PEOPLE ACT, 1951 (43 OF 1951).)' 5. ON CAREFUL READING OF THE PROVISION OF SECTION 293A , IT MADE CLEAR THAT ASSESSEE FALLS IN THE CATEGORY AS REFERRED UNDER SUB-SECTION 2 OF SECTION 293A. SUB-SECTION (2) OF SECTION 293A PERMITS CONTRIBUTION TO ANY POLITICAL PARTIES BY A COMPANY EITHER DIRECTLY OR INDIRECTLY. THE LD. AR OF THE ASSESSEE THROUGHOUT HIS SUBMISSION ARGUED THAT THE CONTRIBUTION MADE TO ELECTORAL TRUST IS COVERED BY THE WORD INDIRECTLY AND QUALIFIED FOR THE DEDUCTION U/S 80GGB OF THE AC T FOR THE YEAR UNDER CONSIDERATION. WE ARE IN FULL AGREEMENT WITH THE SU BMISSION OF LD AR OF ASSESSEE THAT THE CASE OF THE ASSESSEE IS COVERED BY THE EXPLANATION ATTACHED WITH SECTION 80GGB . WE HAVE SEEN THAT THE LD. CIT(A) CORRECTLY APPREC IATED THAT THE CONTRIBUTION TO A POLITICAL PARTIES CAN BE EITHER D IRECTLY OR INDIRECTLY TO QUALIFY THE DEDUCTION U/S 80GGB OF THE ACT. LD. CIT(A) AFTER AP PRECIATING THE FACT MADE THE FOLLOWING CONCLUSION: 5.5 FROM THE ABOVE THEREFORE, IT AUTOMATICALLY FOL LOWS THAT THE CONTRIBUTION TO A POLITICAL PARTY CAN BE EITHER DIRECT OR INDIRECT, S O AS TO QUALIFY FOR DEDUCTION UNDER SECTION 80GGB OF THE ACT. THE APPELLANT'S CONTRIBUT ION TO THE ELECTORAL TRUST SHALL THEREFORE QUALIFY FOR DEDUCTION UNDER SECTION 80GGB TO THE EXTENT THE FUNDS CONTRIBUTED BY THE APPELLANT HAVE ACTUALLY BEEN CON TRIBUTED TO A POLITICAL PARTY OR POLITICAL PARTIES. THEREFORE, OUT OF THE CONTRIBUTI ON OF RS. 3.50 CRORES, ONLY THAT AMOUNT SHALL QUALIFY FOR DEDUCTION UNDER SECTION 80 GGB, WHICH, THROUGH THE APPELLANT'S ELECTORAL TRUST HAS ACTUALLY BEEN GIVEN AWAY AS DONATION TO THE ENTITLED POLITICAL PARTIES. THE ENTITLED POLITICAL PARTIES S HALL BE THOSE WHICH ARE DEFINED IN EXPLANATION BELOW SECTION 80GGC. THE APPELLANT SHAL L THEREFORE FURNISH SUCH DETAILS OF THE ACTUAL DONATIONS GIVEN TO THE ENTITL ED POLITICAL PARTIES OUT OF THE FUNDS OF RS. 3.50 CRORES CONTRIBUTED BY THE APPELLA NT TO THE ELECTORAL TRUST, DURING 7 ITA NO. 5432 /M/2014 M/S . TATA STEEL LTD. THE YEAR. THEREAFTER, THE AO IS DIRECTED TO ALLOW A S DEDUCTION UNDER SECTION 80GGB, SUCH AMOUNT OUT OF THE SAID AMOUNT OF RS. 3. 50 CRORES THAT HAS ACTUAL', BEEN GIVEN AWAY AS DONATION TO THE ENTITLED POLITIC AL PARTIES . 6. WE HAVE SEEN THAT THE LD. CIT(A) CORRECTLY APPRECIA TING THE PROVISIONS OF SECTION 293 OF COMPANIES ACT AND THE DEDUCTION IN RESPECT O F CONTRIBUTION GIVEN BY THE COMPANY TO THE POLITICAL PARTIES. THE ORDER OF LD. CIT(A) IS BASED ON CORRECT APPRECIATION OF THE PROVISIONS AND WE DO NOT FIND A NY INFIRMITY OR ILLEGALITY FOR OUR INTERFERENCE. THUS, THE GROUNDS OF APPEAL RAISED BY REVENUE IN GROUND NOS. 1 TO 4 (WHICH ARE INTERCONNECTED) ARE DISMISSED. AS WE HAV E DISMISSED THE APPEAL OF THE REVENUE ON MERIT, HENCE, FURTHER DISCUSSION ON THE ASSESSEES APPLICATION UNDER RULE 27 OF INCOME TAX (APPELLATE TRIBUNAL) RULES, 1963 B ECAME ACADEMIC. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 8 TH DAY OF FEBRUARY, 2017. SD/- SD/- (B.R.BASKARAN) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED 08/02/2017 S.K.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, (AS STT.REGISTRAR) IT AT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY/