“CSR expenditure”

Business ExpensesSection 37Section 37449 judgments

The decision most relied on for CSR expenditure is JMS Mining (P.) Ltd. v. PCIT (130 Taxmann.com 118), cited in 93 judgments on BharatTax.

Leading authorities on CSR expenditure

JMS Mining (P.) Ltd. v. PCIT

130 Taxmann.com 118 · 2021 · ITAT

citing judgments

Donations made as part of Corporate Social Responsibility (CSR) expenditure are eligible for deduction under Section 80G if all conditions of Section 80G are satisfied. Such expenses are not automatically disallowed merely because they are CSR expenditure, in the absence of specific amendments to Section 80G similar to those in Section 37(1).

MOIL Ltd. v. CIT

396 ITR 244 · 2017 · High Court

citing judgments

Section 263 cannot be invoked to revise an assessment where the Assessing Officer has made an enquiry, examined the details submitted by the assessee, and applied their mind to be satisfied about the admissibility of a claim.

Hindustan Petroleum Corporation Ltd. v. DCIT

96 ITD 186 · 2005 · ITAT

citing judgments

Expenditure incurred by a Government undertaking towards implementation of the 20-point programme, as per specific directions of the Government, is allowable as business expenditure, even if voluntary and not statutorily mandated.

ACIT v. Jindal Power Ltd.

70 Taxmann.com 389 · 2016 · ITAT

citing judgments

Expenditure incurred voluntarily for Corporate Social Responsibility (CSR) purposes is not disallowed if Section 37(1) Explanation 2, which applies to statutory obligations, is not triggered. Additionally, Section 37 is prospective from AY 2015-16, making it inapplicable for AY 2013-14 disallowances.

Agilent Technologies (International) (P.) Ltd. v. ACIT

160 Taxmann.com 238 · 2024 · High Court

citing judgments

Corporate Social Responsibility (CSR) expenditure cannot be claimed as a deduction under Section 80G because it is a statutory mandate and lacks the voluntariness required for donations. This principle applies even when CSR contributions are made to funds like the Prime Minister's National Relief Fund or other eligible charitable institutions.

Ranbaxy Laboratories Ltd. v. Addl. CIT

39 SOT 17 · 2010 · ITAT

citing judgments

Expenditure incurred to promote business or bring goodwill to the assessee is allowable as a deduction. However, notional losses arising from issuing shares below market price are not deductible.

L&T Finance Ltd. v. DCIT

167 Taxmann.com 503 · 2024 · ITAT

citing judgments

Contributions made by a company for Corporate Social Responsibility (CSR) to a registered charitable institution can be treated as akin to corpus donations, potentially allowing for deduction under Section 80G of the Income Tax Act, provided other conditions are met.

Alubound Dacs India (P.) Ltd. v. DCIT

163 Taxmann.com 536 · 2024 · ITAT

citing judgments

Expenditure on Corporate Social Responsibility (CSR) activities is an allowable deduction under section 80G of the Income Tax Act, provided the conditions stipulated in section 80G are met, irrespective of being part of CSR expenditure.

Judgments citing CSR expenditure

M/S. Housing & Urban Development Corporation Ltd. (Hudco), New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the revenue in ITA No

ITA 3261/DEL/2015[2010-11]Status: DisposedITAT Delhi04 Nov 2024AY 2010-11

Bench: Shri M. Balaganesh & Shri Yogesh Kumar U.S.

For Appellant: Shri Gagan Kumar, AdvFor Respondent: Shri Waseem Arshad, CIT DR &

Section 143(3)

cannot be construed as having being incurred wholly and exclusively for the purpose of business of the assessee and proceeded to disallow the entire CSR expenditure in the assessment. It is pertinent to note that CSR is mandated by regulatory agency, Department of Public Enterprises. Hence, an expenditure which ... held that amendment by way of Explanation 2 to section 37(1) of the Act w.e.f. 01.04.2015 was prospective in nature and thus CSR expenditure incurred prior 01.04.2015 was to be allowed. 25.5. In view of the aforesaid observations, the ground No. 1 raised by the assessee is allowed

Sequel Logistics Private Limited, Ahmedabad vs. The Pr. CIT, Ahmedabad-3, Ahmedabad

In the result, the appeal filed by the assessee is hereby allowed

ITA 1114/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad28 Oct 2024AY 2017-18

Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)

Section 135Section 147Section 234ASection 263Section 80G

Perusal of the above assessment order, Ld. PCIT found that the assessee had claimed expenditure of Rs.32,51,000/- as Corporate Social Responsibility (CSR) expenditure in the P & L account. This amount was added back the in the computation of income but 50% of the same namely ... claimed as deduction u/s. 80G of the Act Since CSR expenditure being an application of income is not incurred wholly and exclusively for the purpose of carrying on business, is not allowable as deduction u/s. 80G of the Act. Thus the assessment order passed by the Assessing Officer is erroneous

Deutsche India Pvt. Ltd.(Earlier Known As 'Dboi Global Services Pvt. Ltd.), Mumbai vs. ACIT-1(3)(1), Mumbai

In the result, the appeal by the assessee is partly allowed for 16

ITA 2522/MUM/2022[2017-18]Status: DisposedITAT Mumbai28 Oct 2024AY 2017-18

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri J.D. MistriFor Respondent: Ms. Neena Jeph (CIT-DR)

Section 143(3)Section 144C(13)Section 144C(5)Section 92CSection 92D

denying deduction of Rs. 1,31,34,075 claimed under section 80G of the Act by holding that it was Corporate Social Responsibility ('CSR') expenditure on which deduction under section 80G is not allowable. b. Without prejudice to the above, AO erred in not appreciating the fact that the donation ... paid of Rs.1,00,000 was not a part of the CSR expenditure of Rs.3,69,04,854 debited to the profit and loss account. 3. The AO erred in granting credit for TDS of Rs.6,32,01,974 as against Rs.6,40,75,417 claimed by the Appellants

Cheil India Private Limited, Gurgaon vs. Deputy Commissioner of Income Tax Circle 4(2), Delhi

In the result, appeal of the assessee is allowed

ITA 29/DEL/2024[2020-21]Status: DisposedITAT Delhi28 Oct 2024AY 2020-21

Bench: Shri Shamim Yahya & Shri Sudhir Pareeka.Yr. : 2020-21 Cheil India Private Limited Vs. Dcit, Circle 4(2), 7Th Floor, Two Horizon C.R. Building, Centre, New Delhi – 2 Golf Course Road, Gurgaon, Haryana-122001 (Pan: Aaccc2299Q) (Appellant) (Respondent)

For Appellant: Ms. Ananya Kapoor, Adv., Sh. TarunFor Respondent: Ms. Harpreet Kaur, Sr. DR

Section 115PSection 135Section 135(5)Section 143(3)Section 144BSection 250Section 270ASection 37Section 80GSection 80G(2)

respect of allowability of deduction under section 80G in respect of donations made to eligible funds, even if the same forms part of the CSR expenditure. 7. That in view of the facts and circumstances of the case and in law, the Assessment Centre has erred in initiating the penalty ... bring forth any decision to the contrary. Thus, we accept the plea of learned counsel on the basis of case law cited, denial of CSR expenditure u/s 37(1) of the Act is not embargo to claim deduction u/s 80G of the Act. 7.1 Further, we like to observe that

Aia Engioneering Ltd., Ahmedabad vs. The Principal Commissioner of Income Tax, Ahmedabad-1, Ahmedabad

In the result, the appeals filed by the assessee are hereby allowed

ITA 310/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad25 Oct 2024AY 2018-19

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 142(1)Section 143(3)Section 263Section 80G

relating to the Assessment Years 2017-18 and 2018-19. Since the solitary issue in both the asst. years is Whether CSR expenditure is allowable under section 80G of the Act, hence the above appeals are disposed of by this common order for the sake of convenience. I.T.A ... PCIT how the alleged error of AO has resulted in loss of revenue particularly when deduction u/s. 80G has rightly been claimed w.r.t. CSR expenditure. 4. The Ld. PCIT has further erred in law and on facts in not appreciating that the view taken by the AO is a possible

Aia Engineering Ltd., Ahmedabad vs. The Principal Commissioner of Income Tax, Ahmedabad-1, Ahmedabad

In the result, the appeals filed by the assessee are hereby allowed

ITA 309/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad25 Oct 2024AY 2017-18

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 142(1)Section 143(3)Section 263Section 80G

Advik Hi Tech Pvt Ltd, Pune vs. Dy. Comm. of Income Tax, Circle 8, Pune

In the result, the appeal of assessee is allowed

ITA 1377/PUN/2024[2021-22]Status: DisposedITAT Pune09 Oct 2024AY 2021-22

Bench: Shri R.K. Panda & Ms. Astha Chandra

For Appellant: Shri Sharad A. ShahFor Respondent: Shri Ramnath P. Murkunde

Section 37Section 37(1)Section 80GSection 80G(1)Section 80G(2)Section 80G(2)(a)

Annexure 4 The above decisions clearly explains the law that section 37(1) and section BOG are not correlated. It is undisputed fact that CSR expenditure is not allowable as business expenditure u/s 37 and we have duly disallowed the same u/s 37. However we have correctly claimed the deduction ... specifically mentions two instances (viz, section 80G(2)(a)(iiihk) and (whl), i.e, contributions towards Swacha Bharat Kosh and Clean Ganga Fund), where CSR expenditure is not allowable as deduction under section 80G. c) Section 80G(2)(a) allows deduction for 'any sums paid by the assessee in the previous

Linde Global Support Services Pvt. Ltd., Kolkata vs. Assessing Officer, Circle - 11(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1470/KOL/2024[2020-2021]Status: DisposedITAT Kolkata09 Oct 2024AY 2020-2021

Bench: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

Section 37Section 80G

provisions of Explanation (2) to Section 37 of the Act and Section 80G of the Act, observed that the Parliament intended restrictions to CSR expenditure spent by way of donations to only two funds/trusts i.e. Swachh Bharat Kosh and Clean Ganga Fund. The Tribunal thus held that, the fact that ... Tribunal is reproduced below: 23. As discussed supra, we concur with the contention of the assessee that since Parliament intended certain restrictions to only CSR expenditure in respect of two donations included by an assessee as CSR expenditure i.e. [Swachh Bharat Kosh and Clean Ganga Fund] has impliedly not made

ACIT-3 3 1, Mumbai vs. Jamnagar Utilities and Power Private Limited, Mumbai

ITA 4452/MUM/2024[2015-16]Status: DisposedITAT Mumbai09 Oct 2024AY 2015-16

Section 115JSection 12ASection 143(3)Section 147Section 80GSection 80G(5)

claimed under section 80G of the Act. The AO did not allow the claim under section 80G of the Act for the reason that CSR expenditure incurred by the company is under statutory obligation on the part of the assessee and is not a voluntary donation eligible for claim under ... DCIT (ITA No. 2587 & 2588/Mum/2022) and Naik Seafoods Pvt. Ltd. Vs. PCIT (ITA No. 490/Mum/2021). 3. The ld. Departmental Representative (DR) submitted that the CSR expenditure incurred is an obligation regulated by the Companies Act and is not voluntary in nature. Therefore, the ld. DR argued that the assessee

L & T Finance Limited., Kolkata vs. DCIT, Cir-5(1), Kolkata.

ITA 1060/KOL/2023[2019-20]Status: DisposedITAT Kolkata30 Sept 2024AY 2019-20

Bench: Shri Sanjay Garg & Dr. Manish Borad

Section 135Section 143(3)Section 250Section 37Section 37(1)Section 80GSection 80G(2)Section 80G(2)(a)

justified rather grossly erred in confirming the disallowance of deduction claimed u/s 80G under Chapter VIA in respect of donations which also qualifies as CSR expenditure and expressly disallowed by the appellant under Section 37(1) of the Income-tax Act, 1961. 2. That the appellant craves leave ... Responsibility (in short, “CSR”) expenses as mandatorily required u/s 135 of the Companies Act, 2013 amounting to Rs.4,53,33,770/-. Out of total CSR expenditure, certain expenditure was made by way of donations to eligible institutions u/s 80G of the income Tax Act ( “the Act”) for the purpose

L & T Finance Limited., Kolkata vs. DCIT, Cir-5(1), Kolkata.

ITA 1059/KOL/2023[2018-19]Status: DisposedITAT Kolkata30 Sept 2024AY 2018-19

Bench: Shri Sanjay Garg & Dr. Manish Borad

Section 135Section 143(3)Section 250Section 37Section 37(1)Section 80GSection 80G(2)Section 80G(2)(a)

Northern Operating Services Private Limited, Argon South Tower vs. Deputy Commissioner of Income Tax, Circle 5 (1)(1), Bangalore

In the result, appeal filed by the assessee is allowed

ITA 1565/BANG/2024[2020-21]Status: DisposedITAT Bangalore27 Sept 2024AY 2020-21

Bench: Shri George George K & Shri Laxmi Prasad Sahuassessment Year : 2020-21 M/S. Northern Operating Services Pvt. Ltd., Vs. Dcit, 2Nd Floor Rmz Ecopace, Circle – 5(1)(1), Campus 1C, Bengaluru. Sarjapur Outer Ring Road, Bellandur, Bengaluru – 560 103. Pan : Aaccn 1652 J Appellant Respondent Assessee By : Ms. Divya Motwani, Ca. Revenue By : Shri. D. K. Mishra, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 26.09.2024 Date Of Pronouncement : 27.09.2024

For Appellant: Ms. Divya Motwani, CAFor Respondent: Shri. D. K. Mishra, CIT(DR)(ITAT), Bengaluru

Section 135Section 142(1)Section 143(2)Section 143(3)Section 144BSection 144C(13)Section 234BSection 270ASection 274Section 80G

deduction of INR 1,12,23,296 under section 8oG of the Act by holding that amount paid out of Corporate Social Responsibility ('CSR') expenditure is ineligible for such deduction. 3. That the learned AO erred in stating that the amounts paid to eligible entities specified in section ... appreciating the fact that the provisions of section 135 of Companies Act, 2013 do not impose any restriction for claiming deduction of CSR expenditure under section 80G of the Act. 5. That the learned AO erred in law and on facts by not appreciating the contention of the Appellant that

Sikka Ports & Terminals Limited, Mumbai vs. Principle Commissioner of Income Tax. PCIT-3(3)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 1865/MUM/2024[2016-17]Status: DisposedITAT Mumbai06 Sept 2024AY 2016-17

Bench: Shri Amarjit Singh & Ms. Kavitha Rajagopalassessment Year: 2016-17

For Appellant: Shri Nimesh Vora & Moksha MehtaFor Respondent: Shri B. Laxmi Kanth, Sr. DR

Section 115JSection 143(3)Section 147Section 148Section 263Section 37(1)Section 80G

wrong presumption that learned AO has failed to consider the issue of eligibility of deduction u/s 80G on donation made as a part of CSR expenditure and thereby setting aside the assessment order with a direction to the AO to disallow the claim of deduction u/s 80G; 3. failed ... assessee claimed deduction of Rs. 4,55,00,000/- being 50% of the CSR expenses u/s 80G of the Act. It was observed that CSR expenditure was not allowable expenditure u/s 37(1) of the Act therefore assessee was not eligible to claim deduction u/s 80G of the Act. Accordingly

Assistant Commissioner of Income Tax Circle 3 4 Mumbai, Mumbai vs. Glenmark Pharmaceuticals Limited, Mumbai

ITA 1374/MUM/2024[2015-16]Status: DisposedITAT Mumbai06 Sept 2024AY 2015-16

Bench: SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Vijay MehtaFor Respondent: Shri P.D. Choughule

Section 143(3)Section 144BSection 144C(3)Section 147Section 148Section 37(1)Section 80G

CSR Expenses. However, an amount of Rs.2,14,15,000 was claimed as deduction under section 80G of the Act. Thus, the total CSR expenditure of Rs. 5,89,82,022, which was originally disallowed as CSR expenses was again claimed at Rs. 2,14,15,000 through the route

Blue Dart Express Limited, Mumbai vs. Principle Commissioner of Income Tax, Mumbai

In the result, appeal of the assessee is allowed

ITA 1101/MUM/2024[2017-18]Status: DisposedITAT Mumbai03 Sept 2024AY 2017-18

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI AMARJIT SINGH (Accountant Member)

Section 143(3)Section 147Section 263Section 37(1)Section 80G

point and also the order of the ld. AO allowing deduction u/s.80G 2 M/s. Blue Dart Express Ltd., in respect of Corporate Social Responsibility (CSR) expenditure without making further enquiries. 3. The brief facts are that assessee has filed its original return of income on 30/11/2017 declaring total income ... PCIT which has been incorporated from pages 2-6 of the impugned order. Ld. PCIT has discussed the issue of allowability of CSR expenditure and the purpose behind insertion of Explanation 2 to Section 37(1) and held that CSR expenditure cannot be claimed as tax deductible expenditure u/s.37

American Express (India) Private Limited, New Delhi vs. Principal Commissioner of Income Tax-1, Delhi, New Delhi

In the result, appeal of the assessee is allowed

ITA 2468/DEL/2024[2016-17]Status: DisposedITAT Delhi30 Aug 2024AY 2016-17

For Appellant: Shri Nageshwar Rao, AdvocateFor Respondent: Ms. Ritu Sharma,CIT-DR

Section 135Section 142(1)Section 143(3)Section 263Section 37(1)Section 80G

dated 03.12.2018 was erroneous or not i.e. whether the AO had erroneously allowed the claim of the assessee under Chapter VIA in respect of CSR expenditure amounting to Rs. 67,50,000/- i.e. [50% of Rs. 1,35,00,000/-] u/s 80G of the Act. This action of AO, according ... PCIT, is erroneous since as per Section 37 of the Act, there is express prohibition to allow any amount of CSR expenditure by virtue of Explanation 2 to Section 37 of the Act and so irrespective of the fact that the assessee had made the CSR expenses as donation

Ratna Sagar Pvt. Ltd., New Delhi vs. ACIT Central Circle-4, New Delhi

In the result, appeal of the assessee is allowed

ITA 2556/DEL/2023[2018-19]Status: DisposedITAT Delhi29 Aug 2024AY 2018-19

Bench: Shri Shamim Yahya & Shri Narinder Kumara.Yr. : 2018-19 M/S Ratna Sagar Pvt. Ltd. Acit, Central Circle-4, C/O M/S Raj Kumar & Associates, Vs. New Delhi L-7A (Lgf), South Extension, Part-Ii, New Delhi – 110 049 (Pan: Aaacr1294C) (Appellant) (Respondent)

For Appellant: : S/Shri Raj Kumar Gupta, CA &For Respondent: Shri Yogeshwar Sharma, Sr. DR

Section 135Section 37Section 37(1)Section 80G

assessee claimed deduction u/s. 80G of the Act. The Assessing Officer did not allow the deduction u/s. 80G as it was CSR expenditure which is not allowable under the Act. 3. Aggrieved with the above order of the AO, the assessee preferred appeal before Ld.CIT(A), who after considering ... bring forth any decision to the contrary. Thus, we accept the plea of learned counsel on the basis of case law cited, denial of CSR expenditure u/s 37(1) of the Act is not embargo to claim deduction u/s 80G of the Act. 7.1 Further, we like to observe that

Glenmark Pharmaceuticals Limited, Mumbai vs. Principal Commissioner of Income Tax - 3, Mumbai

In the result, the appeal of the assessee is allowed

ITA 2503/MUM/2024[2018-19]Status: DisposedITAT Mumbai28 Aug 2024AY 2018-19

Bench: Shri Amarjit Singh & Ms. Kavitha Rajagopalassessment Year: 2018-19 Glenmark Pharmaceuticals Pcit-3, Mumbai Limited

For Appellant: Shri Vijay MehtaFor Respondent: Dr. Kishor Dhule, CIT/DR

Section 115JSection 142(1)Section 143(3)Section 263Section 37(1)Section 80GSection 92C

disallow the deduction u/s 80G of the Act amounting to INR 13,68,08,500/- in respect of donation claimed out of CSR expenditure. 4. The appellant craves leave to add, amend, modify, alter and/or delete any of the above grounds of appeal before or during the course of appeal ... assessing officer has allowed the claim of the assessee without examination of the allowbility of deduction u/s 80G of the Act with reference to CSR expenditure. The assessee explained that relevant enquiries have been made by the AO by calling for details of deduction claimed

The DCIT, Circle 1(1), Trivandrum vs. M/S Kerala State Industrial Development Corporation Ltd, Trivandrum

Appeal is allowed

ITA 272/COCH/2023[2018-19]Status: DisposedITAT Cochin14 Aug 2024AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: --- None ---For Respondent: Sri.Sanjit Kumar Das, CIT-DR

Section 135Section 143(3)Section 14ASection 80G

Rs.1,00,00,000/- claimed u/s 80G for donation given to Chief Minister's relief fund which was incurred as part of mandatory CSR expenditure. The expenditure incurred by the assessee on Corporate Social Responsibility was due to mandatory requirement as per section 135 of Companies Act and such expenditure ... under section 80G for donation given to Chief Minister relief fund on the ground that it is incurred as part of mandatory CSR expenditure. In this connection the 4 ITA No.272/Coch/2023. Kerala State Industrial Devl. Corpn.Ltd. assessee relied on the decision of Kolkata A bench of ITAT in the case

Kotak Mahindra Bank Limited, Mumbai vs. Add/Joint/Deputy/ACIT, National E-Assessment Centre, Delhi

In the result, ground no. 1 raised by the revenue is

ITA 569/MUM/2023[2017-18]Status: DisposedITAT Mumbai08 Aug 2024AY 2017-18

Bench: Shri Amit Shuklaand

For Appellant: Shri Biswanath Das, Ld. DRFor Respondent: Shri Faroog Irani, Ld. AR

Section 250Section 36(1)Section 36(1)(vii)Section 36(2)(ii)Section 36(2)(viia)

dated 20.06.2023, without appreciating Explanatory Notes to Finance No.2 Act, 2014, wherein it is highlighted: - a) CSR expenditure, being an application of income, is not incurred wholly &exclusively for the purposes of carrying on business. b) Hence on account of C.S.R. expenditure, no deduction is allowable u/s. 37 ofthe