2025 (4) TMI 1484

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....ated 10.06.2024 for the Assessment Year (AY) 2020-21, confirming the disallowance of Rs. 11,02,500/- made by the Assessing Officer [hereinafter referred to as "AO"] under section 80G of the Income-tax Act, 1961 [hereinafter referred to as "the Act"]. Facts of the Case: 2. The assessee is engaged in the business of trading in coal. For A.Y. 2020-21, it filed its return of income on 31.12.2020 declaring a total income of Rs. 27,60,08,710/-. The return was selected for complete scrutiny under CASS for verification of large deduction claimed under section 80G where the donee's approval status was in question. During the assessment proceedings, the Assessing Officer observed that the assessee had made a donation of Rs. 22,05,000/- as part ....

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....e facts of the case and submission filed by the appellant carefully. I find that the nature of donations paid by the appellant is not covered by the clause 80G(2)(iiihk) i.e. donation paid to Swachh Bharat Kosh set up [by the] Central Govt. other than the sum spent by the assessee in pursuance of Corporate Social Responsibility. Similarly, donations paid by the appellant is also not covered by the clause 80G(2)(iiihl) i.e. the Clean Ganga Fund set up [by the] Central Govt. other than the sum spent by the assessee in pursuance of Corporate Social Responsibility. Thus, I find that the donations paid are of CSR nature and hence no deduction is admissible against such CSR expenditure. Therefore, the addition made by the AO is confirmed and the ....

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....abad - Trib.). - Societe Generale Securities India (P.) Ltd. Vs. PCIT - (2023) 157 taxmann.com 533 (Mumbai - Trib.). 6. The Departmental Representative (DR), on the other hand, relied on the orders of lower authorities and reiterated that no such deduction is allowed. 7. We have carefully considered the rival submissions, the findings of the lower authorities, the documentary and factual matrix on record, as well as the judicial precedents placed before us. The solitary issue for adjudication is whether the assessee is entitled to deduction of Rs. 11,02,500/- under section 80G of the Act in respect of donations made as part of its Corporate Social Responsibility (CSR) obligations. 7.1. The donation of Rs. 22,05,000/- was m....

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....l)]. This drafting choice reflects the principle of expressio unius est exclusio alterius - the express exclusion of certain CSR donations in clauses (iiihk) and (iiihl) implies that other CSR donations, if otherwise qualifying under section 80G, remain allowable. If Parliament had intended to prohibit all CSR-related donations from deduction under section 80G, it could have explicitly done so, just as it did for those two specific funds. The absence of such a general prohibition must be presumed to be deliberate. Therefore, any administrative or interpretive extension of Explanation 2 to section 37(1) into the domain of section 80G would amount to judicial legislation, contrary to settled canons of construction. 7.3. The Co-ordinate Ben....