“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

ACIT-Circle-3(1), Gurgaon vs. Teradata India Private Limited, Gurgaon

Appeal of the revenue is allowed for AY 2018-19

ITA 1430/DEL/2022[2018-19]Status: DisposedITAT Delhi13 Oct 2023AY 2018-19

Bench: Shri M. Balaganesh & Shri Yogesh Kumar Us

For Appellant: Shri Nageswar Rao, AdvFor Respondent: Shri Rajesh Kumar, CIT DR

Section 143(3)Section 37Section 80G

Companies Act, 2013 read with CSR rules thereon and as per the provisions of the Income Tax Act had also voluntarily disallowed the CSR expenditure while computing the taxable income. Since, the donee institutions are eligible institutions enjoying exemption u/s 80G of the Act, the assessee has claimed deduction

Teradata India P.Ltd, Gurugram vs. DCIT, Circle-3(1), Gurugram

Appeal of the revenue is allowed for AY 2018-19

ITA 1248/DEL/2022[2017-18]Status: DisposedITAT Delhi13 Oct 2023AY 2017-18

Bench: Shri M. Balaganesh & Shri Yogesh Kumar Us

For Appellant: Shri Nageswar Rao, AdvFor Respondent: Shri Rajesh Kumar, CIT DR

Section 143(3)Section 37Section 80G

M/S Santosh Foundation, Rampura Phul vs. Commissioner of Income Tax (Exemption), Chandigarh

In the result, the appeal of the assessee is allowed

ITA 286/ASR/2017[2017-18]Status: DisposedITAT Amritsar12 Sept 2023AY 2017-18

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

For Appellant: Sh. Sudhir Sehgal & Sh. P.N. Arora, AdvFor Respondent: Sh. Hitendra Bhauraoji Ninawe, CIT DR

Section 12ASection 135(1)

been clarified vide Point No. (viii) on Page 3 that: “Contribution to Corpus of a Trust/ society/ section 8 companies etc. will qualify as CSR expenditure as long as (a) the Trust/ society/ section 8 companies etc. is created exclusively for undertaking CSR activities or (b) where the corpus ... grant certain donation to the charitable trust, how can the activities of the trust become not charitable with this act. The fact that the CSR expenditure are not allowable expenditure under section 37 of the Act is relevant onlyfor the taxability of the company incurring such expenditure. From the perception

M/S. Blue Cross Laboratories Pvt. Ltd., Mumbai vs. PCIT, Mumbai-3, Mumbai

In the result the appeal filed by the assessee is allowed

ITA 1806/MUM/2023[2018-19]Status: DisposedITAT Mumbai30 Aug 2023AY 2018-19

Bench: Aby T Varkey & Shri Amarjit Singhblue Cross Laboratories Vs. Pcit-3 Pvt. Ltd. Room No. 612, 6 Th Floor, 1, Ground Floor, Aayakar Bhavan, Peninsula Chambers, M. K. Road, Peninsula Corporate Mumbai-400020 Park, G. K. Marg, Mumbai-400013 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aaacb1549G Appellant .. Respondent

For Appellant: Ms. Krupa R. Gandhi &For Respondent: Shri. S. Sribivasu, DR

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

prejudicial to the interest of the revenue and directing the AO to verify the contentions of the Appellant on disallowance of Corporate Social Responsibility (“CSR") expenditure in the return and to disallow the deduction u/s 80G on donations out of CSR expenditure. 2. The Appellant prays that it be held ... erred directing the AO to disallow deduction of Rs. 1,51,88,545/- claimed u/s 80G of the Act, out of CSR expenditure. 2. The Appellant prays that the direction of Hon'ble Pr. CIT to the AO to disallow deduction u/s 80G amounting

Honda Motorcycle and Scooter India Pvt. Ltd., Gurgaon vs. ACIT, Circle-1(1), Gurugram

In the result, the appeal of the assessee is partly allowed for

ITA 1523/DEL/2022[2017-18]Status: DisposedITAT Delhi22 Aug 2023AY 2017-18

Bench: SHRI SHAMIM YAHYA (Accountant Member), SHRI CHALLA NAGENDRA PRASAD (Judicial Member)

For Appellant: Shri Harpreet Singh Ajmani, AdvocateFor Respondent: Shri Rajesh Kumar, CIT DR

Section 143(3)Section 92C

CSR initiative of the assessee company which amounts to INR 22,81,29,964/-. It is observed that the assessee has duly disallowed CSR expenditure of INR 22,81,29,964/- debited to the statement of profit and loss under 27 ITA No.1523/Del./2022 section

Sbi Dfhi Ltd, Mumbai vs. ACIT, Cir-2(2)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 1431/MUM/2023[2018-19]Status: DisposedITAT Mumbai27 Jun 2023AY 2018-19

For Appellant: Shri Aditya RamachandranFor Respondent: Shri Dr. KIshor Dhule

Section 143Section 143(3)Section 263Section 263(1)Section 80GSection 80G(2)(iv)Section 80G(5)

erred in holding that the deduction of Rs.1,72,80,948 claimed under Section 80G of the Act (being 50% of the total CSR expenditure incurred by the appellant) should be disallowed, without appreciating the fact that the same was validly claimed under Section ... 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 to Ld. PCIT

Synergia Lifesciences Pvt Ltd, Mumbai vs. DCIT-Assessment Unit, Mumbai

In the result, the appeal by the assessee is allowed for statistical purposes

ITA 938/MUM/2023[2020-21]Status: DisposedITAT Mumbai20 Jun 2023AY 2020-21

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri Rashmikant C. Modi a/wFor Respondent: Shri Anil Kumar Das

Section 115BSection 135Section 139(5)Section 142(1)Section 143(2)Section 143(3)Section 144BSection 250Section 37(1)Section 80G

During the hearing, the learned Authorised Representative (“learned AR”) by placing reliance upon various decisions of the coordinate bench of the Tribunal submitted that CSR expenditure has been held to be allowable under section 80G of the Act. The learned AR submitted that the CSR expenditure in the present case ... learned AR also referred to the details of donation and payment receipts, forming part of the paper book, to support the submission that the CSR expenditure incurred is covered under the ambit of section 80G of the Act. 8. On the contrary, the learned Departmental Representative vehemently relied upon

ACIT, Circle-18(2), New Delhi vs. Ntpc Vidyut Vyapar Nigam Ltd., New Delhi

Appeals are dismissed and of Assessee is allowed

ITA 5744/DEL/2019[2015-16]Status: DisposedITAT Delhi31 May 2023AY 2015-16

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharma

Section 143(3)

wholly and exclusively for the purpose of business to the assesee which is a public enterprises. The nexus theory with the objectives of CSR expenditure qua the objectives have to be considered in case of public enterprises on different footing as they also have wider horizon of benefit of society ... specific directions of the Government of India and the A.O. in the assessment order passed u/s 143(3) dated 19.03.2015 had allowed the CSR expenditure. 9.5 The CSR expenses has been incurred as per the directions of Government of India. The Hon'ble Kerala High Court in the case

ACIT, Circle-18(2), New Delhi vs. Ntpc Vidyut Vyapar Nigam Ltd., New Delhi

Appeals are dismissed and of Assessee is allowed

ITA 5743/DEL/2019[2013-14]Status: DisposedITAT Delhi31 May 2023AY 2013-14

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharma

Section 143(3)

Ntpc Vidyut Vyapar Nigam Ltd., New Delhi vs. ACIT, Circle-18(2), New Delhi

Appeals are dismissed and of Assessee is allowed

ITA 5578/DEL/2019[2013-14]Status: DisposedITAT Delhi31 May 2023AY 2013-14

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharma

Section 143(3)

ACIT, Circle- 4(1), Gurgaon vs. Lemon Tree Land and Developers Pvt. Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 3749/DEL/2018[2014-15]Status: DisposedITAT Delhi12 May 2023AY 2014-15

Bench: Shri N.K. Billaiya & Ms. Astha Chandra

For Appellant: Shri Percy Pardiwala, Sr.AdvFor Respondent: Shri H.K. Choudhary, CIT- DR

Section 3Section 36Section 37Section 37(1)Section 40A(2)

facts and in circumstances of the case, the learned Commissioner of Income Tax (Appeal) grossly erred in confirming disallowance of Corporate Social Responsibility ('CSR') expenditure of Rs. 9,26,3401- u/s. 37 of the Income Tax Act, 1961 ('ITA") for A Y 2014-15 without appreciating that Explanation ... shall be allowed if the same is incurred wholly and exclusively for the purposes of carrying on business or profession. As the CSR expenditure (being an application of income) is not incurred for the purposes of carrying on business, such expenditures cannot be allowed under the existing provisions of section

Lemon Tree Land and Developers Pvt. Ltd., New Delhi vs. DCIT, Circle- 2, Gurgaon

In the result, the appeal of the assessee is partly allowed

ITA 3087/DEL/2018[2014-15]Status: DisposedITAT Delhi12 May 2023AY 2014-15

Bench: Shri N.K. Billaiya & Ms. Astha Chandra

For Appellant: Shri Percy Pardiwala, Sr.AdvFor Respondent: Shri H.K. Choudhary, CIT- DR

Section 3Section 36Section 37Section 37(1)Section 40A(2)

George Kochuparambil, Prop. United Granites & Metals, Thodupuzha vs. Central Circle, Kochi

In the result, the appeal filed by the assessee is dismissed

ITA 190/COCH/2021[2017-18]Status: DisposedITAT Cochin30 Mar 2023AY 2017-18

Bench: Smt. Beena Pillai, Juduicial Member & Ms. Padmavathy Sshri George Kochuparambil Kochuparambil House Dcit/Acit, Central Vazhithala P.O. Vs. Circle Thodupuzha Kochi Idukki 685583 Pan – Afjpk9650E Appellant Respondent Appellant By: Shri Mathew Joseph, Ca Respondent By: Shri M. Jarasekhar, Cit-Dr Date Of Hearing: 10.01.2023 Date Of Pronouncement: 30.03.2023

For Appellant: Shri Mathew Joseph, CAFor Respondent: Shri M. Jarasekhar, CIT-DR

Section 135Section 143(2)Section 143(3)Section 263Section 37Section 37(1)

expenditure. This submission cannot hold good for AY 2017-18 for the simple reason that the Act itself does not allow the claim of CSR expenditure to be an allowable expenditure under Section 37 of the Act. We note that the assessee had claimed Rs.24,15,860/- in Schedule

Maruti Suzuki India Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 961/DEL/2015[2010-11]Status: DisposedITAT Delhi09 Feb 2023AY 2010-11

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2010-11] Maruti Suzuki India Ltd., Vs Dcit, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi-110070. New Delhi. Pan-Aaacm0829Q Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs Maruti Suzuki India Ltd., Circle-16(1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi-110070. Pan-Aaacm0829Q Appellant Respondent Appellant By Shri Ajay Vohra, Sr.Adv., Shri Neeraj Jain, Adv. & Ms. Tejasvi Jain & Ms. Somya Jain, Ca Respondent By Shri G.C.Srivastava, Adv., Shri Kalrav Mehrotra, Adv. & Shri Mayank Patawari, Ca Date Of Hearing 11.11.2022 Date Of Pronouncement 09.02.2023

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “I” BENCH: NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER & SHRI KUL BHARAT

DCIT, New Delhi vs. M/S. Maruti Suzuki India Ltd., New Delhi

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

ITA 1507/DEL/2015[2010-11]Status: DisposedITAT Delhi09 Feb 2023AY 2010-11

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “I” BENCH: NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER & SHRI KUL BHARAT

Marsh Mclennan Global Services India Private Limited, Mumbai vs. Assessment Unit, Income Tax Dept. Nationl E- Assessment Centre, Delhi

Appeal is allowed

ITA 2452/MUM/2022[2018-19]Status: DisposedITAT Mumbai27 Dec 2022AY 2018-19

For Appellant: Shri Anish ThakkarFor Respondent: Ms. Megha Bhargav

Section 135Section 143(3)Section 144BSection 144CSection 144C(13)Section 144C(5)Section 80G

United Way Mumbai (Rs.4,37.500/-), which were in the nature of CSR expenses. The AO has observed that the assessee has incurred CSR expenditure of Rs 65,96,000/-, which included the above payments totalling Rs.57,45,156/. The assessee has added back the amount of CSR expenditure ... held that deduction u/s.80G is not ITA. No. 2452/Mum/2022 Assessment Year: 2018-19 allowable on payments made by the assessee towards CSR expenditure. 6.2.2 After careful appreciation of the facts, we are of the view that CSR expenses are not allowable u/s.37 of the IT Act in view

P.C. Chandra Holding Pvt. Ltd., Kolkata vs. PCIT-2, Kolkata

In the result, the appeal of the assessee is allowed

ITA 256/KOL/2022[2017-18]Status: DisposedITAT Kolkata21 Dec 2022AY 2017-18

Bench: Shri Rajpal Yadav, Vice- & Shri Girish Agrawalassessment Year: 2017-18 P.C. Chandra Holding Pvt. Ltd. Pr. Cit-2, Kolkata P-37A, Nani Gopal Roychowdhury Vs. Avenue, Anada Palit Road, Kolkata- 700014. Pan: Aadcp 0094 M (Appellant) (Respondent) Present For: Appellant By : Shri Ravi Tulsiyan, Fca Respondent By : Shri G. Hukugha Sema, Cit Date Of Hearing : 14.12.2022 Date Of Pronouncement : 21.12.2022 O R D E R Per Girish Agrawal: This Appeal By The Assessee Is Arising Out Of The Order Of Pr. Cit, Kolkata-2 Vide Order No. Itba/Rev/F/Rev5/2021-22/104144167(1) Dated 24.03.2022 Passed U/S 263 Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) For A.Y. 2017-18. 2. Through This Appeal, The Assessee Has Essentially Challenged The Assumption Of Jurisdiction By The Learned Principal Commissioner Of Income-Tax For Invoking The Impugned Revisionary Proceedings U/S 263 Of The Act & Passing The Order Thereunder For Which, The Assessee Has Taken As Many As Eight Grounds Of Appeal Which Are Not Reproduced For The Sake Of Brevity. The Two Issues Which Have Been Considered By The Ld. Pr. Cit For The Purpose Of Invoking The Revisionary Proceedings & Referred In The Grounds Of Appeal Are (I) Deduction U/S 80G Of The Act Amounting To Rs. 20,000/- For Which No Evidence In Support Of Payment Of Donation Is Produced To Ascertain Its Veracity (Ii) Deduction U/S 80G

For Appellant: Shri Ravi Tulsiyan, FCAFor Respondent: Shri G. Hukugha Sema, CIT

Section 10Section 143(3)Section 263Section 37Section 80GSection 80G(5)(vi)

given to Radha Madhab Institution registered u/s 80G of the Act. He submitted that assessee had on its own added back the amount of CSR expenditure while computing income under the head ‘income from business’ of Rs. 25,31,85,411/-. To corroborate this, Ld. Counsel 4 P.C. Chandra Holding ... only two instances namely section 80G(2)(a)(iiihk) and (iiihl) i.e. contributions towards Swacha Bharat Kosh and Clean Ganga Fund, respectively, where CSR expenditure is not allowable as deduction u/s 80G. According to him, such a prohibition does not apply to any other CSR expenditure when no such explicit

Regan Powertech Pvt Ltd, Chennai vs. DCIT, CC-5(1), Chennai

In the result, appeal filed by the assessee in ITA No

ITA 572/CHNY/2021[2016-17]Status: DisposedITAT Chennai07 Dec 2022AY 2016-17

Bench: Shri Mahavir Singh, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita Nos.571 & 572/Chny/2021 िनधा"रण वष" /Assessment Year: 2015-16 & 2016-17 V. M/S.Regen Powertech Pvt. Ltd., The Dy. Commissioner – Sivanandam, Of Income Tax, No.1, Pulla Avenue, Corporate Circle-5(1), Shenoy Nagar, Chennai. Chennai- 600 030. [Pan: Aadcr 5531 M] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.B.Ramakrishnan, FCAFor Respondent: Mr.S. Marudhu Pandian, CIT

Section 32(1)(iia)Section 35Section 35(1)(i)Section 35(1)(iv)Section 37(1)

license fee to be considered as capital in nature, disallowance of expenditure incurred for scientific research u/s.35(1)(iv) of the Act, disallowance of CSR expenditure, disallowance of expenditure incurred for in-house R & D u/s.35(2AB) of the Act, and also disallowance u/s.14A of the Act. The assessee carried

Regan Powertech Pvt Ltd, Chennai vs. DCIT, CC-5(1), Chennai

In the result, appeal filed by the assessee in ITA No

ITA 571/CHNY/2021[2015-16]Status: DisposedITAT Chennai07 Dec 2022AY 2015-16

For Appellant: Mr.B.Ramakrishnan, FCAFor Respondent: Mr.S. Marudhu Pandian, CIT

Section 32(1)(iia)Section 35Section 35(1)(i)Section 35(1)(iv)Section 37(1)

Petronet Mhb Limited, Bangalore vs. The Income Tax Officer, Ward-5(1)(3), Bangalore

In the result, both the appeal of the assessee is allowed

ITA 789/BANG/2022[2013-14]Status: DisposedITAT Bangalore28 Nov 2022AY 2013-14

Bench: Shri George George K. & Shri Laxmi Prasad Sahuassessment Year : 2013-14

For Appellant: Shri M.G Vinay Simha, C.AFor Respondent: Shri K.R Narayana, Addl. CIT (DR)

Section 143(3)Section 154Section 37(1)

expenditure is not in dispute and considering that the expenditure is incurred prior to the insertion of Explanation 2 to section 37(1), the CSR expenditure is allowable. 50. We have heard the rival submissions and perused the material on record. We notice that the Hon’ble Gujarat High Court ... Explanation 2 to section 37(1) is not applicable to the assessee’s case and therefore the expenses incurred voluntarily by the assessee towards CSR expenditure is allowable u/s 37(1). The addition made in this regard is deleted.” 8. Respectfully following the above decision, we also allow the appeal