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Judgment
PER ANUBHAV SHARMA, JM:
The appeals are preferred by the assessee against the order dated 18.11.2025 of the Ld. Addl/JCIT(A)-5, Kolkata (hereinafter referred as Ld.
First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No : ITBA/APL/S/250/2025-26/1082728962(1) arising out of the intimation order dated 04.12.2019 u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the CPC, Bangalore, for AY: 2019-20 and intimation order dated 23.12.l2021 u/s 143(1) of the Act passed by the CPC, Bangalore, for AY: 2020-21.
On hearing both sides we find that the first issue involved is common in both the AYs, and is the disallowance of Rs.19,75,000/- in 2019-20 and Rs.13,40,000/- in AY 2020-21, made by ld. tax authorities on the basis that as this amount has been spent in CSR expenses and thus the same is not allowable as deduction u/s 80G of the Act.
We find that the issue is squarely covered in favour of the assessee by numerous decisions and we find that ld. CIT(A) has not considered the plea only for the reason that the deduction was not sought at the time of assessment proceedings. In this context, we find that return of assessee was processed u/s 143(1) of the Act and thereafter assessee had filed appeal before ld. CIT(A) and during appeal this additional claim was raised which certainly could have been entertained by ld. CIT(A) by following decision of Hon’ble Supreme Court in Goetze (India) Ltd. vs. CIT(2006) 284 ITR 323 (SC). Thus, based on the aforesaid factual circumstance and settled proposition of law we sustain the respective grounds as raised in both the appeals.
In ITA No.9157/Del/2025 (Assessment Year: 2020-21), vide the ground No. 2 the assessee is challenging the confirmation of addition of Rs.2,82,521/- to the business income being profit on sale of fixed asset.
It is not in dispute that assessee had made profit on sale of fixed asset to the tune of Rs.2,82,521/- which has been found credited in the profit and loss account as per Companies Act, 2013. It is not in dispute that fixed asset sold are depreciable asset. The assessee had sold plant and machinery worth Rs.3,00,000/- and earned profit of Rs.2,82,521/- on such sale. After the sale, the block of plant and machinery had not became negative, as there exist asset in the block with positive value in the block. Hence, there is no question of applicability of provision of Section 50 of the Act on sale of depreciable asset. The assessee had already claimed lesser depreciation under the Income Tax Act by reducing actual sale consideration figure in the block of plant and machinery. The profit on sale of fixed asset of Rs.2,82,521/- has got nothing to do with the computation of income under the normal provision of the Income Tax Act, 1961. Hence, the confirmation of addition of Rs.2,82,521/-by the ld. CIT(A) is grossly unsustainable in the eyes of law and against the provision of the Act. Accordingly, the ground No. 2 is allowed.
In the light of aforesaid discussion the appeals of assessee are allowed with consequences to follow as per the determination of grounds, as above.