Companies Act

199 companies face penalty for non-compliance of CSR norms. No proposal to review provisions of the Companies Act

199 companies face penalty for non-compliance of CSR norms. No proposal to review the state of implementation of the Companies Act related to CSR

Section 135 of the Companies Act, 2013 mandates for expenditure on Corporate Social Responsibility (CSR). Further Section 134 provides that the Board’s Report attached to the Financial Statements of the Company shall also include details about the CSR policy formulated and implemented by the company during the year. The sub section (8) of section 134 further provides that the contravention of its provisions shall make the company punishable with fine and every officer of the company shall be punishable with imprisonment and/or fine.

As per the press release issued by the Ministry of Corporate Affairs (MCA) today, the Government has accorded permission for initiating penal action against 199 companies for non-compliance of provisions of section 135 read with section 134 (3) (o) of the Companies Act, 2013. This was stated by Shri P.P. Chaudhary, Minister of State for Corporate Affairs and Law & Justice in the Rajya Sabha today.

It was also clarified that the Government has no proposal to review the state of implementation of the provisions of the existing Act related to Corporate Social Responsibility. Whenever violation of Corporate Social Responsibility (CSR) provisions is found, action under section 134 (8) of the Companies Act, 2013 (the ‘Act’) is initiated.

Related party transaction u/s 40A(2) shall be treated as bona fide, unless evading tax

Related party transaction u/s 40A(2) shall be treated as bona fide, unless AO finds that one of them is trying…

17 hours ago

Income Tax

‘Transfer of property’ not include ‘acquiring’ of property or ‘purchasing’ of property – ITAT

The word ‘transfer of property’ does not include ‘acquiring’ of property or ‘purchasing’ of property and only can be confined…

19 hours ago

Income Tax

AO was not justified in questioning cash withdrawals from bank account – ITAT

AO is not justified in questioning the cash withdrawals from bank account on the ground that the assessee had sufficient…

21 hours ago

Income Tax

Return/Balance sheet filed within limitation extended by SC to be considered within time

Return/Balance sheet to be considered as being within time if filed within timeline condoned by Hon'ble Supreme Court due to…

2 days ago

Income Tax

Satisfaction Note u/s 153C – term immediate cannot be extended to unreasonable delay

Satisfaction Note u/s 153C - term “immediate” cannot be extended to defeats the purpose of cost effective, efficient and expeditious…

2 days ago

Income Tax

Addition for rental income on accrual basis deleted as court case was pending

Addition for rental income on accrual basis deleted as assessee was pursuing a civil case against the tenant In a…

3 days ago