TaxTMI 
TaxTMI 
2023 (6) TMI 927
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....not appreciating that the deduction of the items covered under Part No. A & B under of Chapter VIA was allowed in AY 2020-21, under the then existing provision of Section 115BAA. 3) The learned CIT(A) erred on facts and in law in not appreciating the fact that the amendment in the provisions of Section 115BAA disallowing deduction under Part A & B of Chapter VIA, was made applicable from next AY 2021-22 whereby even deduction under Part A & B of Chapter VIA, were not allowed along with those Chapter C. 4) The learned CIT(A) erred on fact & in law and ought to have held that if the words are unambiguous or plain, they will indicate the intention with which the statute was passed. 5) The learned CIT(A) erred in holding that the intention of legislature was to disallow the deduction without appreciating fact that the amendment was specifically made effective from 01.04.2021. B) General 1) Para (d) & (e) of the CIT Appeals Order, seems to have been erroneously included in the body of the Order not pertaining to our case & hence not contended. 2) The above Grounds of Appeal are without prejudice to one another and the appellant crave....
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....e Companies Act, 2013. The AO further held that there should be an element of charity and voluntary for being considered as a donation for the purpose of claiming deduction under section 80G of the Act, which is missing in the present case. Accordingly, the AO disallowed the deduction claimed by the assessee under section 80G of the Act. 6. The learned CIT(A), vide impugned order, dismissed the appeal filed by the assessee and upheld the denial of deduction claimed under section 80G of the Act. Being aggrieved, the assessee is in appeal before us. 7. During the hearing, the learned Authorised Representative ("learned AR") by placing reliance upon various decisions of the coordinate bench of the Tribunal submitted that CSR expenditure has been held to be allowable under section 80G of the Act. The learned AR submitted that the CSR expenditure in the present case is for the purpose of education, medical, etc. The learned AR also referred to the details of donation and payment receipts, forming part of the paper book, to support the submission that the CSR expenditure incurred is covered under the ambit of section 80G of the Act. 8. On the contrary, the learned Departmental R....
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....r profession. As the CSR expenditure (being an application of income) is not incurred for the purposes of carrying on business, such expenditure cannot be allowed under the existing provisions of section 37 of the Income-tax Act. Therefore, in order to provide certainty on this issue, it is proposed to clare that for the purposes of section 37(1) 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 section 37. However, the CSR expenditure which is of the nature described in section 30 to section 36 of the Act shall be allowed deduction under those sections subject to fulfilment of conditions, if any, specified therein." 13. From the above it is clear that under Income tax Act, certain provisions explicitly state that deductions for expenditure would be allowed while computing income under the head, 'Income from Business and Profession" to those, who pursue corporate social responsibility projects under following sections. Section ....
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....ntion of legislature is very clear and unambiguous, since expenditure incurred under section 30 to 36 are excluded from Explanation 2 to section 37(1) of the Act, they are specifically excluded in clarification issued. There is no restriction on an expenditure being claimed under above sections to be exempt, as long as it satisfies necessary conditions under section 30 to 36 of the Act, for computing income under the head, "Income from Business and Profession". 16. For claiming benefit under section 80G, deductions are considered at the stage of computing "Total taxable income". Even if any payments under section 80G forms part of CSR payments( keeping in mind ineligible deduction expressly provided u/s. 80G), the same would already stand excluded while computing, Income under the head, "Income form Business and Profession". The effect of such disallowance would lead to increase in Business income. Thereafter benefit accruing to assessee under Chapter VIA for computing "Total Taxable Income" cannot be denied to assessee, subject to fulfillment of necessary conditions therein. 17. We therefore do not agree with arguments advanced by Ld.Sr.DR. 18. In presen....