2026 (7) TMI 1589

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....2-23 & 2023-24, respectively. 2. Since the issues involved in both the appeals are common and identical and arise out of similar facts, both the appeals were heard together and are being disposed of by this consolidated order for the sake of convenience and brevity. For the purpose of adjudication, the grounds of appeal as raised in ITA No.1492/Ahd/2026 for the Assessment Year 2022-23 are treated as the lead case. The decision rendered therein shall apply mutatis mutandis to the connected appeal in ITA No.1474/Ahd/2026 for the Assessment Year 2023-24. 3. The assessee has raised the following grounds of appeal in ITA No. 1492/Ahd/2026 for AY 2022-23: 1. The Ld. CIT(A) has erred in confirming the action of the Assessing Officer....

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....SR) under section 135 of the Companies Act, 2013. According to the Assessing Officer, CSR expenditure is incurred pursuant to a statutory obligation and, therefore, lacks the essential element of voluntariness required for a donation u/s 80G of the Act. Accordingly, the claim of deduction of Rs. 43,58,146/- was disallowed. 5. Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before the Ld. CIT(A) who concurred with the view of the Assessing Officer by holding that CSR expenditure being mandatory in nature could not be regarded as a voluntary donation eligible for deduction u/s 80G of the Act and accordingly sustained the addition. 6. Aggrieved by the order of the Ld. CIT(A), the assessee is in ....

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....xmann.com 694], Gujarat Mineral Development Corporation Ltd Vs. PCIT [176 taxmann.com 227] and DCIT Vs. Adani Logistics Ltd. [183 taxmann.com 391]. For the sake of ready reference, the relevant findings of the Coordinate Bench of this Tribunal in the case of Adani Logistics Ltd (supra) are reproduced hereunder:- "8. The second ground pertains to disallowance of Rs. 29,10,000/- u/s. 80G of the Act, in respect of amount expended under CSR activity. The assessee had incurred expenditure of Rs. 58,20,000/- towards CSR activity which was disallowed under the provision of section 37 of the Act. However, the assessee had claimed deduction u/s 80G of the Act, in respect of CSR expense donated to the eligible Trust which was disallowed by t....

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....of the Act. The said Explanation cannot be extended or imported to CSR contributions which is otherwise eligible for deduction under any other provision or Chapter, to say donations made to charitable trusts registered u/s 80G of the Act. The Co-ordinate Bench of this Tribunal has held in the case of Torrent Power Grid Ltd. In ITA No. 1191/Ahd/2025 dated 16.02.2025 that the CSR expenditure is allowable as deduction u/s 80G of the Act. The Coordinate Bench of Mumbai Tribunal also held in the case of Gabriel India Limited, (173 taxmann.com 219) that the assessee's claim for deduction under Section 80G of the Act in respect of CSR expenses was eligible for deduction. Considering the consistent view of the different Benches of the Tribunal ....