TaxTMI 
TaxTMI 
2022 (12) TMI 1436
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.... Failure to follow directions of the Hon'ble Dispute Resolution Panel (DRP) issued under section 144C(5) of the Act 2 erred in not following the directions of the Hon'ble DRP issued under section 144C(5) of the Act which required the id AO to only verify if the donations made by the Appellant satisfied the conditions laid down in section 80G of the Act and if so allow the Appellant's claim for deduction under section 80G. Without prejudice: 3. erred in disallowing the Appellant's claim for deduction under section 80G of the Act amounting to Rs 28,72.578 on the premise that the same are grouped under CSR expenses in the Appellants books of accounts and have not been voluntarily expended by the Appellant 4. erred in not appreciating the fact that the impugned donations fulfill the conditions specified under section 80G of the Act as demonstrated by the Appellant in its submissions. 3. The relevant facts in brief are that the Appellant (formerly known as Jardine Lloyd Thompson India Pvt. Ltd.) filed return of income declaring total income of INR 49,02,87,550/-. The case of the Appellant was selected for scrutiny. In the Draf....
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....Appellant except those made to Swach Bharat Kosh and the Clean Ganga Fund provided all the other conditions of Section 80G of the Act are satisfied. The DRP, therefore, directed the Assessing Officer to verify whether the donations made by the Appellant (other than donations to Swach Bharat Kosh and the Clean Ganga Fund) fulfilled the conditions laid down under Section 80G of the Act and allow deduction for the same in case the aforesaid conditions were fulfilled. However, in the Final Assessment Order, the Assessing Officer has again made the disallowance of INR 28,72,578/- holding that the deduction under Section 80G of the Act is available only for donations made on voluntary basis and not for CSR contributions. 6. Per contra, the Ld. Departmental Representative referred to the Draft Assessment Order and submitted that during the relevant previous year, the Appellant had incurred expenses amounting to INR 65,96,000/- towards CSR which was duly added back in the computation of income. However, the Appellant thereafter claimed deduction under Section 80G of the Act in respect of expenses of INR 28,72,578/- out of aforesaid CSR expenses of INR 65,96,000/-. Since the CSR expenses....
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....80G, except for two sub-clauses (iiihk) and (iiihl) of sub-section (2) of Sec.80G, which are reproduced as under: "(iiihk) the Swachh Bharat Kosh, set up by the Central Government, other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under subsection (5) of section 135 of the Companies Act, 2013 (18 of 2013), or (iiihl) the Clean Ganga Fund, set up by the Central Government, where such assessee is a resident and such sum is other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under subsection (5) of section 135 of the Companies Act, 2013 (18 of 2013);" Therefore, it is seen that except the donations made to Swach Bharat Kosh and the Clean Ganga Fund as above, the rest of the donations would be eligible for deduction, if all the other conditions of Sec. 80G are fulfilled. Reliance is also placed on the judgement of Hon'ble ITAT, Bangalore, in the case of M/s. Goldman sachs Services vs. JCIT (ITA No. IT(TP)A No.2355/Bang /2019) dated 15/06/2020. The relevant portion of the said judgement is as under: "16. The last ground of appeal argued by the learned Authorized Representa....
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....bility of claim u/s.80G of the Act but due to legal obligation prescribed u/s. 135 r.w Schedule VII of Companies Act, 2013. We find that the A.O has allowed deduction u/s.80G of the Act in respect of contribution made to PM Relief Fund which is not disputed We are of the opinion that the A.O. has not made his observations clear that no CSR expenses are eligible for deduction u/s. 80G of the Act. We consider it appropriate to refer to the Clauses (iiihk) & (whl) of sub- section 2 of Section 80G of the Act which are read as under: "(iiihk) the Swachh Bharat Kosh, set up by the Central Government. other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under sub-section (5) of Section 135 of the Companies Act, 2013 (18 of 2013); or (whl) the Clean Ganga Fund set up by the Central Government, where such assessee is a resident and such sum is other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under sub-section (5) of Section 135 of the Companies Act, 2013) (18 of 2013)." Where these two exceptions are provided in Section 80G of the Act, it can be inferred that the other contributions made u/s. 135(5....