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TMI Blog2024 (12) TMI 1522X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the donor. We find that there is no such restriction for donation out of CSR funds to Prime Minister's National Relief Fund.
We are of the considered opinion that the impugned deduction u/s 80G would be available to the assessee.
AR has cited many decisions of Tribunal taking a view favorable to the assessee which include Interglobe Technology Quotient Pvt. Ltd. [2024 (6) TMI 8 - ITAT DELHI] as well as Jamnagar Utilities and Power P. Ltd. [2024 (7) TMI 1585 - ITAT MUMBAI] - Therefore, we take similar view in preference to view expressed in the earlier decision of Agilent Technologies international P. Ltd. [2023 (12) TMI 1090 - ITAT DELHI] Accordingly, we direct Ld. AO to allow impugned deduction u/s 80G. Assessee appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... bution would be considered as part of CSR expenditure. However, Ld. AO rejected the same on the ground that donation involves voluntary act without there being any legal obligation. CSR, on the other hand, imposes obligation of the part of corporate entity to incur expenditure out of profits by way of appropriation of profits as compliance expenditure and this cannot be allowed u/s 80G. The intention of the legislature was never to allow the said deduction since it would result into subsidizing the expenditure. Furthermore, CSR expenditure was not voluntary but mandatory in nature. Accordingly, the deduction was denied. The Ld. CIT(A) confirmed the same by relying upon the decision of Delhi Tribunal in the case of Agilent Technologies inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly and exclusively for the purposes of carrying on business or profession. As the CSR expenditure (being an application of income) is not incurred for the purposes of carrying on business, such expenditures cannot be allowed under the provisions of section 37 of the Income-tax Act. Therefore, in order to provide certainty on this issue, said section 37 has been amended to clarify that for the purposes of sub-section (1) of section 37 any expenditure incurred by an assessee on the activities relating to corporate social responsibility referred to in section 135 of the Companies Act, 2013 shall not be deemed to have been incurred for the purpose of business and hence shall not be allowed as deduction under said section 37. However, the CSR ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain funds and institutions formed for a social purpose of national importance, where it is allowed at the rate of one hundred percent, such as the National Defence Fund set up by the Central Government, the Prime Minister's National Relief Fund, the Prime Minister's Armenia Earthquake Relief Fund, the Africa (Public Contributions-India) Fund, the National Children's Fund, the National Foundation for Communal Harmony etc. "Swachh Bharat Kosh" has been set up by the Central Government to mobilize resources for improving sanitation facilities in rural and urban areas and school premises through the Swachh Bharat Abhiyan. Similarly, Clean Ganga Fund has been established by the Central Government to attract voluntar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction has been granted for donation to these funds, however, it has specifically been made clear that any sum spent in pursuance of Corporate Social Responsibility under sub-section (5) of section 135 of the Companies Act, 2013 towards these funds will not be eligible for deduction from the total income of the donor. We find that there is no such restriction for donation out of CSR funds to Prime Minister's National Relief Fund. 7. Considering all the above facts and circumstances of the case, we are of the considered opinion that the impugned deduction u/s 80G would be available to the assessee. The Ld. AR has cited many decisions of Tribunal taking a view favorable to the assessee. The same include the decision of Delhi Tribunal in In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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