2024 (10) TMI 1810

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....ing the order passed by the Ld. DRP affirming the disallowance of the claim u/s 80G of the Act amounting to Rs. 6,27,000/- on the ground that the donation paid was part of CSR expenses. 3. Facts in brief are that the assessee spent a sum of Rs. 12,54,000/- towards donation paid for CSR expenses in terms of the provisions of the Companies Act. The said amount was paid as donation to some institution which was holding exemption certificate u/s 80G of the Act, meaning thereby the donation made to the said institution would entitle the assessee to claim exemption u/s 80G of the Act. Accordingly, the assessee while filing the return of income in its computation of total income added back the entire donation of Rs. 12,54,000/-. ....

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....f and for the purposes of business, is applicable only to the extent of computation of 'Business Income' under Chapter IV-C of the Act. In our view, therefore, the Explanation (2) to Section 37 of the Act which denies deduction for the expenses incurred on CSR initiative by way of deduction from computation of 'Business Income' cannot be read into Chapter VI of the Act, which is applicable for arriving at taxable income from the Gross Total Income. It is also noted that wherever the Legislature intended that CSR contributions to any specific charitable trusts should be denied deduction, necessary provisions were incorporated in the specified subclauses, viz. sub-clauses (iiihk) and (iiihi). It is noted that no such debar has been set out by....

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....has been subsequently confirmed by ld. CIT (A) for the reason that CSR expenses incurred by the assessee already stands disallowed in the computation of income. Now, Section 80G of the Act comes into play if any of the donations is eligible for deduction u/s 80G of the Act. It is not in dispute before us that the organizations to which the alleged donation has been given are registered u/s 12A of the Act holds the approval of Section 80G of the Act. This Tribunal in the case of M/s. JMS Mining Pvt. Ltd. vs PCIT in ITA No. 146/KOL/2021 order dated 22.07.2021 has allowed the deduction u/s 80G of the Act on CSR expenses. The relevant finding of this Tribunal is reproduced below: 23. As discussed supra, we concur with the contenti....