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TMI Blog2025 (4) TMI 1484X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 11,02,500/- made by the Assessing Officer [hereinafter referred to as "AO"] under section 80G of the Income-tax Act, 1961 [hereinafter referred to as "the Act"]. Facts of the Case: 2. The assessee is engaged in the business of trading in coal. For A.Y. 2020-21, it filed its return of income on 31.12.2020 declaring a total income of Rs. 27,60,08,710/-. The return was selected for complete scrutiny under CASS for verification of large deduction claimed under section 80G where the donee's approval status was in question. During the assessment proceedings, the Assessing Officer observed that the assessee had made a donation of Rs. 22,05,000/- as part of its statutory Corporate Social Responsibility (CSR) obligation under section 135 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overed by the clause 80G(2)(iiihk) i.e. donation paid to Swachh Bharat Kosh set up [by the] Central Govt. other than the sum spent by the assessee in pursuance of Corporate Social Responsibility. Similarly, donations paid by the appellant is also not covered by the clause 80G(2)(iiihl) i.e. the Clean Ganga Fund set up [by the] Central Govt. other than the sum spent by the assessee in pursuance of Corporate Social Responsibility. Thus, I find that the donations paid are of CSR nature and hence no deduction is admissible against such CSR expenditure. Therefore, the addition made by the AO is confirmed and the ground raised by the appellant is dismissed." 4. Aggrieved by the order of CIT(A), the assessee is in appeal before us raising followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other hand, relied on the orders of lower authorities and reiterated that no such deduction is allowed. 7. We have carefully considered the rival submissions, the findings of the lower authorities, the documentary and factual matrix on record, as well as the judicial precedents placed before us. The solitary issue for adjudication is whether the assessee is entitled to deduction of Rs. 11,02,500/- under section 80G of the Act in respect of donations made as part of its Corporate Social Responsibility (CSR) obligations. 7.1. The donation of Rs. 22,05,000/- was made by the assessee to two charitable institutions namely - All India Social Education Charitable Trust amounting to Rs. 22,00,000/- and Dahiben Patel Charitable Trust amounting to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other CSR donations, if otherwise qualifying under section 80G, remain allowable. If Parliament had intended to prohibit all CSR-related donations from deduction under section 80G, it could have explicitly done so, just as it did for those two specific funds. The absence of such a general prohibition must be presumed to be deliberate. Therefore, any administrative or interpretive extension of Explanation 2 to section 37(1) into the domain of section 80G would amount to judicial legislation, contrary to settled canons of construction. 7.3. The Co-ordinate Bench Decision in AIA Engineering Ltd. [ITA Nos. 309 & 310/Ahd/2024], relying on the decisions of other co-ordinate bench, has already discussed and decided on the merits of this issue wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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