TaxTMI 
TaxTMI 
2026 (6) TMI 818
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....No.7727 to 7729/Del/2025, respectively. Heard both the parties at length. Case files perused. We proceed appeal/assessment year-wise for the sake of convenience and brevity. ITA No.6762/Del/2025 AY: 2017-18 2. We notice during the course of hearing that the assessee's former substantive ground raised in the instant appeal seeks to reverse the learned lower authorities' respective assessment findings dated 31.12.2019 making section 68 unexplained cash credits addition of Rs. 1,91,92,932/- as upheld in the lower appellate discussion. That being the case, it is an undisputed fact that the assessee company is engaged in providing housing loans to individuals, corporate bodies etc. for construction/purchase and upgradation of housing etc. There is further no quarrel that it had received cash deposits from its customers during demonetization which stand treated as unexplained cash credits in both the lower proceedings. 3. Both the parties vehemently reiterate their respective stands against and in support of the impugned addition. It transpires from perusal of the case records that the assessee has all along claimed and sought to prove the impugned cash deposits as coming ....
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....'s instant "lead" appeal ITA No.6762/Del/2025 is partly allowed in above terms. ITA No.7727/Del/2025 AY: 2018-19 6. Learned counsel at the outset very fairly states that it does not wish to press for the latter three substantive grounds involving section 40A(7) gratuity disallowance; refund of excess dividend distribution tax and TDS credit; involving varying sums, for the precise reason that the CIT(A)'s lower appellate directions has already restored the same back to the Assessing Officer. We thus reject the assessee's instant latter three substantive ground as not pressed subject to all just exceptions in very terms. 7. The assessee's first and foremost substantive ground herein regarding addition of interest income qua its substandard assets de-recognized during the year involving addition of Rs. 7,65,11,479/- is hereby restored back to the Assessing Officer by adopting judicial consistency as discussed in the preceding paragraphs. 8. The assessee's second substantive ground herein claims section 80G deduction regarding CSR expenditure amounting to Rs. 5,35,89,478/- as disallowed in both the learned lower authorities' respective findings quoting section 37(1) of ....
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.... Honda Motorcycle & Scooter India Pvt. Ltd. v. ACIT, Circle 1(1), Gurugram ITANo. 1523/Del/22/[2023] 153 taxmann.com 567 (Delhi - Trib.) 3. Interglobe Technology Quotient Private Limited v. ACIT, Circle 10(1), New Delhi. ITA No. 95/Del/24/[2024] 163 taxmann.com 542/207 ITD 360 (Delhi - Trib.) 4. M/s Goldman Sachs Services Pvt. Ltd. v. JOT, Special Range- 3, Bangalore. IT(TP)A No. 2355/Bang/2019/[2020] 117 taxmann.com 535 (Bangalore - Trib.) 5. M/s JMS Mining Pvt. Ltd. v. Pr. CIT, Kolkata- 2, Kolkata. ITANo. 146/Kol/21/[2021] 130 taxmann.com 118/190 ITD 702 (Kolkata - Trib.) 6. Ericsson India Global Services Private Limited v. DOT, Circle 7(1), New Delhi ITANo. 1150/Del/22/[2024] 160 taxmann.com 599 (Delhi - Trib.) 7. Optum Global Solutions (India) Private Limited, Hyderabad v. DOT, Circle 5(1), Hyderabad ITA-TP Nos. 145 & 482/Hyd/2022/[2023] 154 taxmann.com 651/203 ITD 14 (Hyderabad - Trib.) 8. Societe Generale Securities India (P) Ltd. v. Pr. CIT [2023] 157 taxmann.com 533/204 ITD 796 (Mumbai - Trib.) 9. Power Mech Projects Ltd. v. DCIT [2023] 156 taxmann.com 575 (Hyderabad - Trib.) 7. Per contra, Ld. DR co....
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....rectly undertaken by said companies, such as setting up and running schools, social business projects, etc. Such expenditure would include expenditure otherwise falling for consideration under section 37(1) of the Act. On the other hand, companies, instead of undertaking or participating directly in a project, may choose to give donations to institutions that are engaged in undertaking such projects, which is also a recognized way of compliance of CSR obligation. 7.2 The assessing officer and CIT(A) have relied upon General Circular 14/2021 dated 25.08.2021 issued by MCA and "Explanatory Notes to the provisions of the Finance (No.2) Act, 2014" to hold that donations made as part of CSR expenditure are not allowable as deduction. The foundation of their reasoning being that the donation is voluntary in nature, while CSR expenditures are under statutory obligations. 7.3 As we take notice of the fact that Parliament legislated that CSR expenses would not be eligible for deduction as business expenditure under section 37 of the Act by inserting Explanation 2 to section 37(1) vide the Finance (No.2) Act, 2014 (applicable from the assessment year 2015-16), which provide....
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.... 7.5 As with regard to the reasoning that CSR expenditure are not voluntary but mandatory in nature due to penal consequences, we are of considered view that voluntary nature of donation is by nature of fact that it is not on the basis of any reciprocal promise of donee. The CSR expenditures are also without any reciprocal commitment from beneficiary being philanthropic in nature. The Act permits deduction of donations as per Section 80G of the Act, even though, assessee is not gaining any benefit out of any reciprocity from donee. Similar is the case of CSR expenditure. Thus the reasoning of learned Tax Authority, the CSR expenditure is mandatory, does not justify disallowance of these expenditures u/s 80G, if other conditions of section 80G are fulfilled. There is no allegation of Revenue that other conditions of Section 80G are not fulfilled. We, thus sustain the ground." 7.6 After perusing the aforesaid findings, we find that the facts of the present case are identical to that of the aforesaid case of other assessee, hence, the issue in dispute involved in the instant appeal is squarely covered in favour of the assesee. Therefore, respectfully following binding ....