S KANT HEALTHCARE LTD ,MUMBAI V. PRINCIPAL COMMISSIONERER OF INCOME TAX CIRCLE -5, MUMBAI

ITA 3357/MUM/2025

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The case involves S Kant Healthcare Ltd., which appealed against the order of the Principal Commissioner of Income Tax (PCIT) concerning the assessment year 2021-22. The PCIT had revised the assessment order, claiming that the deduction claimed under section 80G for CSR expenditure was erroneous and prejudicial to the interest of the revenue. The Tribunal examined whether the PCIT was justified in assuming jurisdiction under section 263 of the Income-tax Act, 1961, to revise the assessment order. The Tribunal noted that the issue of CSR expenditure being eligible for deduction under section 80G is a highly debatable issue, supported by various coordinate benches of the Tribunal. Consequently, the Tribunal set aside the PCIT's order and restored the original assessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711734 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• 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, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SWAPNIL CHOUDHARY; DR
• Assessee Lawyers: V. JANI; AR
• Keywords: Set aside; Difference of opinion; Change of opinion; Revision of order
• Section: 143(3); 263; 80G

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI ANIKESH BANERJEE, HON’BLE JUDICIAL MEMBER I.T.A. No. 3357/Mum/2025 Assessment Year: 2021-22 S Kant Healthcare Ltd. 3-A, Shivsagar Estate North Wing Dr. Annie Besant Road Worli Mumbai - 400018 [PAN: AAECS5406P] Vs The Principal Commissioner of Income Tax - 5 अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri V. Jani, A/R Revenue by : Shri Swapnil Choudhary, Sr. 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 [hereinafter ‘the ld. Pr. CIT’] dated 19/03/2025 framed u/s 263 of the Income-tax Act, 1961 (hereinafter ‘the Act’) pertaining to AY 2021-22. 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 further erred in holding that the assessment order dated 27/12/2022 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. Printed from counselvise.com I.T.A. No. 3357/Mum/2025 2 3. The bone of contention is the claim of deduction u/s 80G of the Act which in the opinion of the ld. Pr. CIT was out of CSR expenditure which is not allowed as deduction and, therefore, the claim of deduction u/s 80G of the Act is against the basis intention of the provision. 4. 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 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.). 5. 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 27/12/2022 framed u/s 143(3) r.w.s. 144B of the Act. 6. 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 Printed from counselvise.com I.T.A. No. 3357/Mum/2025 3 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 "