Dy. CIT v. National Bank for Agriculture & Rural Development [2023] 221 TTJ 25 /221 DTR 369 (Mum) (Trib)

S. 36(1)(xii) :Corporation or body corporate-Central or State or Provisional Act-Business expenditure–Absence of notification in the relevant year-Not allowable as deduction. [S.37(1)]

For availing deduction under Section 36(1)(xii), the assessee itself should be notified by the Central Government. Central Government has notified the assessee from assessment year 2013-14 onwards, meaning thereby the assessee was not notified for assessment year 2010-11. Moreover, was not the owner of funds transferred to WDF. If the amount has been spent out of the funds so transferred to WDF as per the directions issued by the Government / RBI, the assessee cannot claim such expenditure incurred out of WDF, as deduction. Held disallowance was sustainable.(AY.2010-11)