Hindustan Tin Works Ltd. v. ACIT, Circle-11(2), New Delhi
[Citation -2019-LL-0821-68]

Citation 2019-LL-0821-68
Appellant Name Hindustan Tin Works Ltd.
Respondent Name ACIT, Circle-11(2), New Delhi
Court ITAT-Delhi
Relevant Act Income-tax
Date of Order 21/08/2019
Assessment Year 2013-14
Judgment View Judgment
Keyword Tags csr expenses • disallowance of expenses • sales promotion expenses
Bot Summary: The assessee is engaged in the business of manufacturing of tin cans/printed lac sheet/component trading in tin plate. For the relevant Assessment, the assessee company filed return of income on 28.09.2013 declaring an income of Rs. 9,17,83,460/-. The CIT(A) partly allowed the appeal of the assessee. The Ld. AR submitted that during the year under consideration the assessee company debited Rs. 19,66,901/- to the profit and loss account under the head Misc. The assessee through its Canvironment Week Campaign has been providing a lead in this goal and raising awareness of the importance of recycling which have direct nexus with the increase in demand of CAN s in market. The Ld. AR further submitted that in A.Y. 2012-13, the Tribunal in ITA No. 3531/Del/2016 allowed this issue in favour of the assessee and against the revenue. The Ld. DR relied upon the Assessment Order and the order of the CIT(A).


IN INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SH. PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No.5906/Del/2016 Assessment Year : 2013-14 Hindustan Tin Works Ltd., ACIT, M.L.Puri & Co., Circle-11(2), 407, New Delhi House, 27, C.R.Building, I.P.Estate, Vs. Barakhamba Road, New Delhi-110001. New Delhi-110001. PAN : AAACH2597Q (Appellant) (Respondent) Appellant by Sh. Salil Aggarwal, Adv. & Sh. Shailesh Gupta, Adv. Respondent by Sh. Amit Katoch, Sr.DR Date of hearing 05.08.2019 Date of pronouncement 21.08.2019 ORDER PER SUCHITRA KAMBLE, J.M: This appeal by assessee is directed against order dated 06.10.2016 passed by CIT(A)-12, New Delhi in relation to assessment year 2013-14 on following grounds:- 1. That on facts and in circumstances of case and in law Learned Commissioner of Income Tax (Appeal) erred in dismissing appeal of appellant company and retaining disallowance of Rs.19,66,901/- in order passed by Ld. Deputy Commissioner of Income Tax Circle-11(2) New Delhi u/s 143(3) of Income Tax Act, 1961. 2. That Ld. CIT (Appeal)-12 New Delhi grossly erred in law and on facts in sustaining disallowance of Rs. 19,66,901/- treating Can-viroment Expenses as Corporate Social responsibilities expenditure. 3. That order passed by Ld. CIT (Appeal)New Delhi, being erroneous ITA No.5906/Del/2016 Assessment Year : 2013-14 in law and on facts deserved to be deleted. appellant craves leave to add or amend any ground of appeal. 2. assessee is engaged in business of manufacturing of tin cans/printed lac sheet/component & trading in tin plate. For relevant Assessment, assessee company filed return of income on 28.09.2013 declaring income of Rs. 9,17,83,460/-. Assessing Officer made disallowance of expenses incurred on account of Corporate Social Responsibility Expenses amounting to Rs. 19,66,901/- and disallowance of sales promotions amounting to Rs. 1,46,894/-. Thus, Assessing Officer assessed income of assessee at Rs. 9,38,97,260/-. 3. Being aggrieved by Assessment Order, assessee filed appeal before CIT(A). CIT(A) partly allowed appeal of assessee. 4. Ld. AR submitted that during year under consideration assessee company debited Rs. 19,66,901/- to profit and loss account under head Misc. expenses. Ld. AR further submitted that promoting sustainability and environmentally friendliness of metal packaging is increasingly important to canmaking industry. Indian canmaker Hindustan Tin Works through its Canvironment Week campaign, has been providing lead in this goal while at same time helping needy in India, and raising awareness of importance of recycling. response from industry was certainly positive as well as numerous companies and organizations showing their support for campaign, it had been recognized with several awards in recent months. Ld. AR submitted that these expenditure was related to promotion & spreading awareness about sustainability and environmentally friendliness of metal packaging is increasingly Page | 2 ITA No.5906/Del/2016 Assessment Year : 2013-14 important to canmaking industry. assessee through its Canvironment Week Campaign has been providing lead in this goal and raising awareness of importance of recycling which have direct nexus with increase in demand of CAN s in market. Thus, Assessing Officer as well as CIT(A) erred in not allowing these expenses. Ld. AR further submitted that in A.Y. 2012-13, Tribunal in ITA No. 3531/Del/2016 allowed this issue in favour of assessee and against revenue. 5. Ld. DR relied upon Assessment Order and order of CIT(A). 6. We have heard both parties and perused all relevant material available on record. Tribunal in A.Y. 2012-13 held as under: 16. Hon ble Karnataka High Court in case cited as CIT & Anr. Vs. Infosys Technologies Ltd. (2014) 360 ITR 714 allowed expenditure incurred by Infosys Technologies Ltd. on account of CSR by installing traffic signal near establishment to ease traffic congestion u/s 37(1) of Act by holding that such expenses can be held to be expanded wholly and exclusively for purpose of business u/s 37(1) of Act. 17. In this case, assessee claimed expenditure of Rs. 15,22,874/- under head Can-viroment Week expenses having details as under:- Date of voucher Nature of expenses Amount 14.07.2011 Website expenses 27,575 08.12.2011 Health check-up of Rag Pickers 37,303 26.12.2011 Film Making 1,35,000 12.01.2012 Organizing Can-Viroment Week 13,22,970 Programme Page | 3 ITA No.5906/Del/2016 Assessment Year : 2013-14 Total 15,22,874 18. So, we are of considered view that keeping in view totality of aforesaid circumstances, ld. CIT(A) has rightly deleted disallowance made by AO on account of CSR by following decision rendered by Hon ble Karnataka High Court as well as following rule of consistency. So, ground no. 2 is determined against Revenue. issue in present Assessment Year is also identical. Assessing Officer as well as CIT(A) ignored fact that said expenditure was incurred relating to promotion and spreading awareness about sustainability and environmentally friendliness of metal packaging which is important to canmaking industry. Thus, expenses incurred by assessee are coming under purview of Section 37(1) of Income Tax Act, 1961. Therefore, appeal of assessee is allowed. 7. In result, appeal of assessee is allowed. Order pronounced in open court on 21st day of August, 2019. Sd/- Sd/- (PRASHANT MAHARISHI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 21.08.2019 * Amit Kumar* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR Page | 4 Hindustan Tin Works Ltd. v. ACIT, Circle-11(2), New Delhi
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