Deduction claimed u/s 80G for donations qualifying as CSR ...

CSR Donations Eligible for Section 80G Tax Deductions, Court Rejects Exclusion of Mandatory CSR Expenditure Argument.

November 19, 2024

Case Laws Income Tax AT

Deduction claimed u/s 80G for donations qualifying as CSR expenditure was expressly disallowed u/s 37(1). The court held that even though there is no explanation for disallowing deductions for contributions to Swachh Bharat Kosh and Clean Ganga Fund u/s 80G, there is no such restriction for other contributions mentioned in Schedule VII of the Companies Act and Section 80G. The CBDT clarified that CSR expenditure admissible u/ss 30 to 36 shall be allowed despite being for CSR obligations. The contention that "donations" u/s 80G(2)(a) excludes mandatory CSR expenditure was rejected, as there is no compulsion to donate to institutions approved u/s 80G for CSR expenditure. Taxing statutes must be interpreted strictly, and deductions u/s 80G cannot be denied by importing restrictions from other sections, except where specifically barred. Therefore, the assessee is not barred from claiming deduction u/s 80G for donations to approved institutions, even if made for discharging CSR obligations u/s 135 of the Companies Act.

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Deduction claimed u/s 80G for donations qualifying as CSR ...

CSR Donations Eligible for Section 80G Tax Deductions, Court Rejects Exclusion of Mandatory CSR Expenditure Argument.

November 19, 2024

Case Laws Income Tax AT

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