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

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....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 can.........