KKR INDIA ADVISORS PRIVATE LIMITED,MUMBAI V. THE PRINCIPAL COMMISSIONER OF INCOME TAX, MUMBAI-6, MUMBAI

ITA 3599/MUM/2025

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The case involves KKR India Advisors Private Limited, which appealed against the order of the Ld. PCIT passed under section 263 of the Income-tax Act, 1961, for the Assessment Year 2020-21. The appeal was against the revisional order which set aside the assessment order allowing a deduction for CSR expenses under section 80G. The Ld. PCIT contended that CSR expenses, being a statutory obligation under the Companies Act, 2013, cannot be claimed as a deduction under section 80G. The Tribunal, referencing several precedents where similar issues were ruled in favor of the assessee, concluded that the issue was debatable and the Ld. AO's decision was a plausible view, thus setting aside the revisional order of the Ld. PCIT.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714679 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Other Referred Cases: WNS Global Services (P) Ltd vs Assessment Unit, NFAC, Motilal Oswal Securities Ltd, Allegis Services India Pvt. Ltd., JMS Mining Pvt. Ltd.
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RITESH MISHRA
• Assessee Lawyers: NIRAJ SHETH
• Keywords: Set aside; Difference of opinion; Change of opinion; Revision of order
• Section: 143(3); 142(1); 263; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E”, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA Nos 3599/Mum/2025 (Assessment Yeas: 2020-21) KKR India Advisors Private Limited, 2nd Floor, Piramal Tower, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai-400 013 PAN: AADCK5826G vs The Principal Commissioner of Income-tax, Room No.501, 5th Floor, Aayakar Bhavan, M.K. Road, Mumbai-400 020 APPELLANT RESPONDENT Assessee by : Shri Niraj Sheth Respondent by : Shri Ritesh Mishra, CIT DR Date of hearing : 04/08/2025 Date of pronouncement : 06/08/2025 O R D E R Per Anikesh Banerjee (JM): The instant appeal of the assesse is filed against the order of the Learned Principal Commissioner of Income-tax (in short, ‘the Ld.PCIT) passed under section 263 of the Income-tax Act, 1961 (in short, ‘the Act’) for Assessment Year 2020-21, date of order 20/03/2025. The impugned order emanated from the order of the Assessment Unit, Income-tax Department (in short, ‘the Ld. AO’) passed under section 143(3) read with section 144B of the Act, date of order 28/09/2022. Printed from counselvise.com 2 ITA 3599/Mum /2025 KKR India Advisors Pvt Ltd 2. The brief facts of the case are that the assesse company filed the return under section 139(1) of the Act by declaring total income at Rs.24,09,26,470/-. Finally, the case was selected for scrutiny under CASS and notice under section 143(2) of the Act was issued. During the assessment proceedings, the Ld.AO verified by issuing notice under section 142(1) related to the claim of deduction under section 80G of the Act in relation to the CSR expenses and on such verification, the Ld.AO, being satisfied with the assessee’s submission, allowed the claim of the assessee. The Ld.PCIT, by invoking provisions of section 263 has considered that as per the Companies Act, 2013 mandates the CSR expenses which is a statutory obligation not the voluntary. So the CSR expenses cannot be claimed as deduction under section 80G of the Act. So, the CSR Expenses was allowed by the Ld.AO amount to Rs.13,90,000/- as deduction under section 80G of the Act is held as erroneous and prejudicial to the interest of the revenue. On invoking provisions of section 263, the Ld.PCIT set aside the impugned assessment order and the revisional order was passed. Being aggrieved, the assesse filed an appeal before us. 3. The Ld.AR argued and filed a paper book containing pages 1 to 91, which is kept on record. The Ld.AR in argument stated that the said issue pertains to the claim of deduction under section 80G towards CSR expenses, is a debatable issue and the issue was already considered by the co-ordinate bench of the ITAT, Mumbai Bench, in favour of the assessee. Further, related to verification of this issue, the Ld.AR invited our attention on APB page 59. The letter dated 20/01/2022 where the assessee has explained the alleged expenses against the notice under section 142(1) dated 03/12/2021. The Ld.AR invited our attention to APB Page 67, Printed from counselvise.com 3 ITA 3599/Mum /2025 KKR India Advisors Pvt Ltd where at paras 9 & 10, the Ld.AO asked the specific question related to claim of expenses under section 80G of the Act. The assessee submitted details of expenses which is enclosed at APB page 70 and the relevant clarification related to the allowability of the deduction under section 80G of the Act which is annexed at APB pages 81 to 91. The Ld.AR relied on the order of the ITAT, Mumbai Bench in the case of WNS Global Services (P) Ltd vs Assessment Unit, NFAC (2025) 174 taxmann.com 1031 (Mumbai- Trib.) where the same bench has considered the issue in favour of the assessee. 4. The Ld.DR argued and stands in favour of the revisional order, but was unable to bring any contrary judgement against the submission of the Ld.AR. 5. We heard the rival submissions and considered the documents available on the record. On careful consideration, we find that the issue was duly examined by the Ld. AO in the impugned assessment order, wherein the claim for deduction under section 80G of the Act was verified. Therefore, no lapse is found in the verification of the interest income claimed as deductible under section 80G of the Act. The applicability of the CSR expenses towards 80G was explained by pursing the notice U/s 142(1) of the Act. We have given a thoughtful consideration to the order of the Ld. PCIT. We are of the considered view that the issue raised by the Ld. PCIT is a highly debatable issue as the Co-ordinate Benches of the Tribunal have taken a consistent view that CSR expenditure can be claimed as expenditure u/s 80G of the Act in the cases of WNS Global Services (P) Ltd (supra), Motilal Oswal Securities Ltd. (ITA No. Printed from counselvise.com 4 ITA 3599/Mum /2025 KKR India Advisors Pvt Ltd 1795/Mum/2023, order dated 18.08.2023), Allegis Services India Pvt. Ltd. (ITA No. 1693/Bang/2019) and JMS Mining Pvt. Ltd. [130 taxmann.com 118 (Kolkata Trib.)]. As the issue is highly debatable, any view taken by the Ld. AO during the course of original assessment proceeding has to be considered as a plausible view and the view taken by the Ld. PCIT, howsoever plausible, is nothing but a change of opinion for which jurisdiction u/s 263 of the Act cannot be assumed. In light of the above discussion, it is clear that a mere difference of opinion between the Ld. AO and the Ld. PCIT cannot render the assessment order erroneous and prejudicial to the interests of the revenue. Considering the facts of the case in totality, we set aside the order of the Ld. PCIT and restore the order of the Ld. AO. 6. In the result, the appeal filed by the assessee bearing ITA 3599/Mum/2025 is allowed. Order pronounced in the open court on 06th day of August 2025. Sd/- sd/- (PRABHASH SHANKAR) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, िदनांक/Dated: 06/08/2025 Pavanan Copy of the Order forwarded to: 1. अपीलाथ /The Appellant ,s 2. ितवादी/ The Respondent. 3. आयकर आयु\u0014 CIT 4. िवभागीय ितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Mumbai 5. गाड फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Mumbai Printed from counselvise.com 5 ITA 3599/Mum /2025 KKR India Advisors Pvt Ltd Printed from counselvise.com "