VISTEX ASIA PACIFIC PRIVATED LIMITED ,MUMBAI V. PCIT-3 , MUMBAI

ITA 2849/MUM/2025

AI Insights

The case involves Vistex Asia Pacific Private Limited, which appealed against the order of the Principal Commissioner of Income Tax, Mumbai - 3, concerning the assessment year 2020-21. The dispute centered on the Pr. CIT's decision to treat the assessment order dated 29/07/2022 as erroneous and prejudicial to the interest of the revenue because the assessee claimed a deduction under section 80G for 50% of its CSR expenditure. The ITAT examined whether the Pr. CIT was correct in assuming jurisdiction under section 263 and found that the issue was a matter of debate and had been previously ruled upon in similar cases, thus setting aside the Pr. CIT's order and restoring the original assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633420 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• 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/Bang/2019), JMS Mining Pvt. Ltd. [130 taxmann.com 118 (Kolkata Trib.)], Elan Pharma (India) Pvt. Ltd. vs. PCIT in ITA No. 2419/Mum/2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA P. KAUSHIK; DR
• 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 “F” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 2849/Mum/2025 Assessment Year: 2020-21 Vistex Asia Pacific Private Limited 401, Windfall Sahar Plaza J.B. Nagar Metro Station Andheri(E) Mumbai - 400053 [PAN: AABCV7660D] Vs Principal Commissioner of Income Tax, Mumbai - 3 अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : None Revenue by : Ms. Kavita P. Kaushik, Sr. D/R सुनवाई की तारीख/Date of Hearing : 10/06/2025 घोषणा की तारीख /Date of Pronouncement: 13/06/2025 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 13/03/2025 framed u/s 263 of the Act. 2. None appeared on behalf of the assessee in spite of notices. We decide to proceed ex-parte. 3. The ld. D/R was heard at length. Case records carefully perused. The sum and substance of the grievance of the assessee is that the ld. Pr. CIT erred in assuming jurisdiction u/s 263 of the Act and further erred in holding that the assessment order dated 29/07/2022 is not only erroneous but prejudicial to the interest of the revenue. 4. Briefly stated the facts of the case are that the assessee filed its return of income on 26/11/2020 declaring total income at Rs. I.T.A. No. 2849/Mum/2025 2 19,81,52,990/-. The return was selected for scrutiny assessment and order u/s 143(3) r.w.s. 144B of the Act was framed on 29/07/2022. The returned income of the assessee was accepted as such. 4.1. Assuming jurisdiction conferred upon him by the provision of Section 263 of the Act, the ld. Pr. CIT issued a showcause notice to the assessee asking it to showcause why the assessment order dated 29/07/2022 should not be treated as erroneous and prejudicial to the interest of the revenue as 50% of the CSR expenditure of Rs. 26,93,080/- is claimed as donation u/s 80G of the Act. The ld. Pr. CIT went on to hold that the assessment order framed u/s 143(3) r.w.s. 144B of the Act is not only erroneous but prejudicial to the interest of the revenue and directed the AO to disallow the deduction u/s 80G of the Act in respect of donation claimed out of CSR expenditure. 5. We have given a thoughtful consideration to the order of the ld. Pr. CIT. We are of the considered view that the issue raised by the ld. Pr. CIT 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 Motilal Oswal Securities Ltd. (ITA No. 1795/Mum/2023, order dated 18.08.2023), Allegis Services India Pvt. Ltd. (ITA No. 1693/Bang/2019), JMS Mining Pvt. Ltd. [130 taxmann.com 118 (Kolkata Trib.)] and Elan Pharma (India) Pvt. Ltd. vs. PCIT in ITA No. 2419/Mum/2025. 6. As the issue is highly debatable, any view taken by the AO during the course of original assessment proceedings has to be considered as a plausible view and the view taken by the ld. Pr. CIT, howsoever plausible, is nothing but a change of opinion for which jurisdiction u/s I.T.A. No. 2849/Mum/2025 3 263 of the Act cannot be assumed. Considering the facts of the case in totality, we set aside the order of the ld. Pr. CIT and restore that of the AO dated 29/07/2022. 7. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 13th June, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 13/06/2025 *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 "