TaxTMI 
TaxTMI 
2026 (6) TMI 1179
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....ere made by the CPC to the total income declared. Against the said intimation order, an appeal was filed before the Ld. CIT(A) on 06.05.2021. Thereafter, the case of the assessee was selected for scrutiny by way of issue of notice u/s 143(2) of the Act and assessment order was passed u/s 143(3) dated 17.09.2022 wherein the total income of the assessee was computed at Rs. 43,11,76,738/- by making following additions/disallowances: (i) Disallowance of Education Cess claimed as expenses of Rs. 27,95,057/-; (ii) Disallowances of deduction claimed u/s 80G of Rs. 18,00,500/- out of CSR expenses; (iii) Disallowance made by CPC vide order dated 24.09.2021 of Rs. 13,73,24,225/- u/s 43B of the Act; and (iv) Disallowance of Employee's Contribution to PF of Rs. 5,11,409/- deposited after due the date. 3. The assessee filed an appeal before the Ld. CIT(A) against the said order, who vide impugned order has partly allowed the appeal of the assessee wherein the Ld. CIT(A) has deleted the disallowance made u/s 43B of the Act on account of bonus payment of Rs. 8,12,41,438/-; GST payable of Rs. 4,75,62,851/- and employer contribution of Provident Fund (PF) of R....
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....aid out of CSR expenses. 7. Heard both the parties and perused the materials available on record. The Ld. CIT(A) while dealing the disallowances has made following observations. "5.5 The ground of appeal No. 4 is related to not allowing deduction u/s 80G in respect of donations of Rs. 36,01,000/- made by the assessee to the approved trusts registered under section 12A and after obtaining certificate u/s 80G. This issue is common for the appeal for AY 2018-19 also. In this context, The Assessing Officer has primarily disallowed the deduction on the ground. (a) CSR expenditure by the assessee forms part of the mandatory requirement of the Companies Act 2013 and consequently not eligible for deduction u/s 80G of the IT Act. (b) Allowing deduction under section 80G will result in subsidizing these expenses incurred by the corporate which is not the intent of the legislature. The appellant has mainly contended that the contributions to CSR expenditure are disallowed u/s 37 of the I.T. Act. However, there is nothing in section 80G specifically disallowing the donations for CSR, if the institute to which donations are made is otherwise eligible. The ....
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.... deduction towards business expenditure by insertion of Explanation 2 to Section 37(1) of the Act by Finance Act, 2014 w.e.f 01.04.2015. However, there is no such corresponding amendment to section 80G of the Act. Only condition for claiming deduction under section 80G of the Act as per the existing provision is the institute to which donation is made must have been registered under section 80G of the Act. Once the aforesaid condition is fulfilled, the donor is entitled to avail the deduction. This is also the view expressed by the Co-ordinate Bench in case of Honda Motorcycle and Scooter India Pvt. Ltd. (supra)." (Emphasis Supplied) American Express (India) P. Ltd. vs POT [2024] 166 taxmann.com 91 (Delhi -Trib.) -Copy enclosed as Annexure 4 In this case, the assessee had incurred expenditure to the tune of certain amount under Corporate Social Responsibility (CSR). The assessee in its book disallowed the said expenditure. The aforesaid expenditure included some donations which were eligible for deduction under section 80G. The assessee claimed benefit of said deduction on the donations made under CSR. The Assessing Officer in assessment proceedings examined asses....
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....e for deduction u/s 80G of the Act. The coordinate bench of ITAT Bangalore in case of First American (India) Pvt. Ltd v. ACIT in ITA No.1762/Bang/2019 vide its order dt. 29.04.2020 has allowed the deduction under Section 80G by making following observations: 15. In our view, expenditure incurred under section 30 to 36 are claimed while computing income under the head, 'Income form Business and Profession", whereas monies spent under section 80G are claimed while computing "Total Taxable income" in the hands of assessee. The point of claim under these provisions are different. 16. Further, intention of legislature is very clear and unambiguous, since expenditure incurred under section 30 to 36 are excluded from Explanation 2 to section 37(1) of the Act, they are specifically excluded in clarification issued. There is no restriction on an expenditure being claimed under above sections to be exempt, as long as it satisfies necessary conditions under section 30 to 36 of the Act, for computing income under the head, "Income from Business and Profession". 17. For claiming benefit under section 80G, deductions are considered at the stage of computing "Total ....