ACIT, CIRCLE 10(1), NEW DELHI vs. INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED , DELHI

ITA 8967/DEL/2025Status: DisposedITAT Delhi17 July 20267 pages
AI SummaryDismissed

What were the facts?

The assessee, a government enterprise, claimed a deduction of INR 7.50 crores made to the PM Cares Fund under Section 80G. The Assessing Officer disallowed this deduction, holding that the amount was contributed out of Corporate Social Responsibility (CSR) expenditure, which is not an allowable expenditure under Section 37(2). The CIT(A) allowed the assessee's claim.

What did the Tribunal hold?

The Tribunal held that Explanation 2 to Section 37(1) denying deduction for CSR expenses applies only to computing business income. It cannot be extended to deny deduction under Section 80G for donations to eligible charitable trusts, as this would lead to double disallowance. The donation to PM Cares Fund is eligible for deduction under Section 80G.

What were the issues?

Whether CSR expenditure, even if disallowed as a business expense, can be claimed as a deduction under Section 80G if the donee institution is eligible. Whether disallowing a CSR donation under Section 37(1) and then denying it under Section 80G amounts to double disallowance.

Which sections of the Income-tax Act were involved?

Section 80G,Section 37(1),Section 37(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI “A” BENCHES, NEW DELHI

Before: SHRI SUDHIR KUMAR & SHRI MANISH AGARWAL

PER MANISH AGARWAL, A.M.: The present appeal is filed by Revenue against the order dated 17.10.2025 passed by Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld. CIT(A)”] in Appeal No. NFAC/2019- 20/10192969 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of assessment order dated 26.09.2022 passed u/s 143(3) r.w.s. 144B of

The order continues below.

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