CSR-linked donations to approved relief funds remain deductible under section 80G absent an express statutory prohibition.

Donations made in discharge of CSR obligations to approved relief funds were held eligible for deduction under section 80G because the Act contains no express bar against such contributions for those funds. The commentary distinguishes section 37(1), where CSR expenditure is denied as business deduction, from section 80G, which permits deduction for specified donations unless the Legislature has specifically excluded them. A separate income-computation issue under the intimation process was restored for factual verification and fresh decision by the Assessing Officer.

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Issues: (i) Whether donations made to the Prime Minister's Relief Fund and the Maharashtra Chief Minister's Relief Fund, though incurred in discharge of corporate social responsibility, were eligible for deduction under section 80G; (ii) Whether the assessment issue relating to computation of income under the intimation process required restoration for verification.

Issue (i): Whether donations made to the Prime Minister's Relief Fund and the Maharashtra Chief Minister's Relief Fund, though incurred in discharge of corporate social responsibility, were eligible for deduction under section 80G.

Analysis: The statutory scheme of section 80G permits deduction for specified donations and contains express prohibitions only where the Legislature has so provided. The prohibition inserted for certain CSR-linked contributions to Swachh Bharat Kosh and Clean Ganga Fund showed that CSR-linked donations are not universally barred under section 80G. Explanation 2 to section 37(1) of the Income-tax Act disentitles CSR expenditure as business expenditure, but does not create a wider embargo against deduction under other provisions such as section 80G. The contribution was treated as a donation to approved funds, and the absence of any express bar under section 80G for these funds was .

Conclusion: The claim for deduction under section 80G was allowed in favour of the assessee.

Issue (ii): Whether the assessment issue relating to computation of income under the intimation process required restoration for verification.

Analysis: The grievance was confined to verification of the return income and the computation reflected in the intimation. Since the limited prayer was for factual verification and the Revenue raised no objection, the matter was restored to the jurisdictional Assessing Officer for examination in accordance with law.

Conclusion: The issue was remitted for verification and consequential fresh decision, in favour of the assessee for statistical purposes.

Final Conclusion: The appeal succeeded on the principal deduction issue and the remaining income-computation issue was sent back for verification, leaving the assessee with only partial substantive relief.

Ratio Decidendi: A donation made in discharge of CSR obligation remains eligible for deduction under section 80G unless the statute expressly excludes that category of contribution.

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