TaxTMI 
TaxTMI 
2026 (1) TMI 675
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....clause (iv) of sub-section (2) of section 80G and hence the restriction of CSR contribution is not applicable to this contribution. 2. The appellant company having satisfied all the conditions for availing deduction u/s 80G and the proof of the contributions have also been provided to the Assessing Officer, the Assessing officer has erred in making the disallowance u/s 80G. 3. The Assessing officer and the DRP ought to have considered the following ITAT decisions which clearly states that deduction u/s 80G is allowable to CSR contributions :- i. First American (India) Pvt Ltd Vs. ACIT [ITA No. 1762/Bang/2019 reported in 080 ITR (Trib) 0538. ii. Goldman Sachs Services (P) Ltd Vs. Joint Commissioner of Income Tax [IT (TP) Appeal No. 194/Bang/2023]. iii. \FNF India (P) Ltd Vs. ACIT [ITA 1565/Bang/2019] iv. JMS Mining (P) Ltd Vs. PCIT [Kolkata Bench of ITAT in ITA/146/Kol 2021]. 3. Brief facts of the case are that Assessee is a Private Limited Company engaged mainly in the business of manufacture and export of spice oils, spice oleoresins and other spice products. For the Assessment Year 2020-21, it filed the return of income on ....
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....ribution have also been provided to the AO and therefore, the AO has erred in making the disallowance u/s 80G of the Act. Further, ld. A.R. of the assessee vehemently submitted that the restriction on deduction u/s 80G of the Act in respect of CSR contribution is applicable only for contribution made under clause (iiihk) and (iiihl) of sub-section (2) of section 80G of the Act and not to contribution made under other clauses of section 80G(2) of the Act. As the assessee company had made contribution under clause (iv) of sub-section (2) of section 80G of the Act and hence, the restriction of CSR contribution is not applicable to this contribution. 7. Before us, the ld. D.R. relied on the order of authority below. 8. We have heard the rival submissions and perused the materials available on record. It is undisputed fact that the assessee had incurred expenses amounting to Rs. 98,69,100/- on account of Corporate Social Responsibility (CSR) in line with the guidelines issued under the Companies Act, 2013. On this payment, the assessee was found to have claimed deduction to the extent of Rs. 49,34,550/- u/s 80G of the Act. The AO is of the opinion that such a claim is not permissi....
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....ot dilute its eligibility for deduction u/s 80G of the Act, as the deduction depends on the nature of recipient and compliance of the conditions specified u/s 80G of the Act. 5.4 We also note that the coordinate bench of this Tribunal in the case of Allegis Services (Inia) Pvt. Ltd. vs. ACIT in ITA No.1693/Bang/2019 dated 29.4.2020 held as under: 10. Section 135 of Companies Act, 2013 requires companies with CSR obligations, with effect from 01/04/2014. Finance (No.2) Act, 2014 inserted new Explanation 2 to subsection (1) of section 37, so as to clarify that for purposes of subsection (1) of section 37, 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 be an expenditure incurred by the assessee for the purposes of the business or profession. 11. This amendment will take effect from 1/04/2015 and will, accordingly, apply to assessment year 2015-16 and subsequent years. 12. Thus, CSR expenditure is to be disallowed by new Explanation 2 to section 37(1), while computing Income under the Head 'Income form Busin....
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.... approved universities/research institutions or company also qualifies for deduction. In-house R&D is eligible for deduction, under this section. * Section 35CCD provides deduction for skill development projects, which constitute the flagship mission of the present Government. * Section 36 provides deduction regarding insurance premium on stock, health of employees, loans or commission for employees, interest on borrowed capital, employer contribution to provident fund, gratuity and payment of security transaction tax. Income Tax Act, under section 80G, forming part of Chapter VIA, provides for deductions for computing taxable income as under: * Section 80G(2) provides for sums expended by an assessee as donations against which deduction is available. a) Certain donations, give 100% deduction, without any qualifying limit like Prime Minister's National Relief Fund, National Defence Fund, National Illness Assistance Fund etc., specified under section 80G(1)(i) b) Donations with 50% deduction are also available under Section 80G for all those sums that do not fall under section 80G(1)(i). Under Section 80G(2)(iiihk) a....