TaxTMI 
TaxTMI 
2025 (3) TMI 1663
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.... 2. That on the facts and in the circumstances of the case and in law, the Ld. AO was not justified and has erred both on facts and in law in disallowing the claim under section 80G of the Act to the tune of INR 1,11,53,530 in respect of eligible donations amount included under Cooperate Social Responsibility ('CSR') expenditure disallowed under Section 37(1) of the Act. 3. That on the facts and in the circumstances of the case and in law, the Ld. AO has grossly erred by not appreciating that the scope of the restriction imposed under section 37 of the Act, falling under Chapter-IV of the Act relating to "computation of business income" does not extend to Chapter VI-A of the Act, dealing with "deductions to be made in computing total income" as both chapters are independent of each other. 4. That the Ld. AO has grossly erred in holding that the amount has been paid by the Appellant as a mandatory requirement as per Section 135 of the Companies Act, 2013 and thus, it is not a voluntary donation eligible for deduction under section 80G of the Act. 5. That on facts and circumstances of the case and in law, the Ld. AO erred in holding that th....
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....sideration is still open and no final judgment on this issue have been received. In the previous year also, there is addition on this issue. Finally he rejected the deductions claimed by the assessee u/s 80G to the extent of Rs. 2,23,07,059/- and 50% of the eligible amount of Rs. 1,11,53,530/- is not allowed u/s 80G of the Act. Accordingly, he made addition to the income of the assessee. 4. Aggrieved assessee filed objections before the ld. DRP and ld. DRP also rejected the plea of the assessee and sustained the addition. 5. Aggrieved assessee is in appeal before us. 6. At the time of hearing, ld. AR of the assessee submitted that the issue under consideration is squarely covered by various decisions of the coordinate Bench as well as other ITAT Benches. He relied on the following decisions :- (i) Cheil India (P.) Ltd. vs DCIT [2024]169 taxmann.com 507 (Delhi - Trib.) (ii) American Express (India) P. Ltd. vs PCIT [2024]208 ITD 564 (Delhi-Trib.) (iii) Interglobe Technology Quotient (P.) Ltd. vs ACIT [2024] 114 ITR(T) 611 (Delhi-Trib.) (iv) Societe Generale Securities India (P.) Ltd. vs PCIT [2023] 157 taxmann.com 533 (Mumbai - Trib....
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....2023 (AY 2018-19) in the case of M/s Ratna Sagar Pvt. Ltd. vs. ACIT has dealt the similar issue and held as under:- "5. We have heard the rival contentions and perused the material available on record and also gone through the orders of the authorities below. 5.1 At the time of hearing, Ld. AR for the assessee contended that the issue in dispute is squarely covered by the several case laws of the ITAT. In this regard, he referred to the ITAT decisions dated 28.05.2024 passed in ITA No. 95/Del/2024 (AY 2020-21) in the case of Interglobe Technology Quotient Private Limited; Honda Motorcycle and Scooter India Pvt. Ltd. vs. ACIT in ITA No. 1523/Del/2022 (AY 2017-18) dated 22.8.2023; & Ericsson India Global Services (P) Ltd. vs. DCIT in ITA No. 1150/Del/2022 (AY 2015-16) dated 05.03.2024. In view of above, he requested to follow the ratio of the aforesaid Tribunal's orders and allow the issue in dispute in favour of the assessee raised in the instant appeal. 5.2 Ld. Sr. DR did not controvert the aforesaid proposition made by the Ld. AR, but he supported the orders of the authorities below. 6. Upon careful consideration, we find consider....
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....lowed as deduction under section 37(1) of the IT Act. The intent of Parliament in bringing the aforesaid provision is given in the Explanatory Memorandum to the Finance (No.2) Bill, 2014 and is reproduced as under : "CSR expenditure, being an application of income, is not incurred wholly and exclusively for the purposes of carrying on business, As the application of income is not allowed as deduction for the purposes of computing taxable income of a company, amount spent on CSR cannot be allowed as deduction for .computing the taxable income of the company, Moreover, the objective of CSR is to share burden of the Government in providing social services by companies having net worth/turnover/profit above a threshold. If such expenses are allowed as tax deduction, this would result in subsidizing of around one-third of such expenses by the Government by way of tax expenditure." (emphasis supplied) 7.4 The aforesaid explanatory memorandum categorically expresses the legislative intent and the rationale of disallowance of CSR expenditure referred to in section 135 of the Companies Act, that such expenditure is application of income and not incurred for the pu....