“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

Finastra Software Solutions (India) Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

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

ITA 268/BANG/2021[2016-17]Status: DisposedITAT Bangalore28 Nov 2022AY 2016-17

Bench: Shri George George K. & Ms. Padmavathy S.It(Tp)A No. 268/Bang/2021 (Assessment Year: 2016-17)

For Appellant: Shri T. Suryanarayana, AdvFor Respondent: Shri Manjunath Karkihalli, CIT-DR

Section 143(3)Section 80G

apply to assessment year 2015-16 and subsequent years. 34 IT(TP)A No. 268/Bang/2021 M/s. Finastra Software Solutions (India) Pvt. Ltd. 13. Thus, CSR expenditure is to be disallowed by new Explanation 2 to section 37(1), while computing Income under the Head 'Income form Business and Profession'. Further ... 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 expenditure cannot be allowed under the existing provisions of section

DCIT 2 (2)(1), Mumbai vs. State Bank of India (Successor to State Bank of Travancore), Mumbai

In the result, the appeal of the assessee is allowed, whereas the appeal of the revenue is dismissed

ITA 3574/MUM/2019[2016-17]Status: DisposedITAT Mumbai31 Oct 2022AY 2016-17

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

Section 14ASection 36Section 37(1)Section 43B

community services banking 8. The learned CIT(A) erred in disallowing a sum of Rs 1.59 crore as being in the nature of CSR expenditure covered by the proviso to section 37(1) whereas appellant bank is not governed by a mandatory requirement of CSR expenditure and said sum were

State Bank of India, Mumbai vs. ACIT 2 (2)(1), Mumbai

In the result, the appeal of the assessee is allowed, whereas the appeal of the revenue is dismissed

ITA 3476/MUM/2019[2016-17]Status: DisposedITAT Mumbai31 Oct 2022AY 2016-17

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

Section 14ASection 36Section 37(1)Section 43B

Agappe Diagnostics Ltd, Mumbai vs. Dy.Commissioner of Income Tax, Circle 1(1)(1), Mumbai

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

ITA 1870/MUM/2022[2018-19]Status: DisposedITAT Mumbai19 Sept 2022AY 2018-19

Bench: Shri. Pavan Kumar Gadale & Shri Gagan Goyalagappe Diagnostics Limited, 401. 402,Jaisingh Business Centre, Sahar Road, Andheri East, Mumbai 400099 Pan: Aacca3940Q ...Appellant Vs. Deputy Commissioner Of Income Tax- Circle – 1(1)(1), Mumbai, Room No.533, 5Th Floor, Aayakar Bhavan M.K. Road Mumbai – 400 020 ...Respondent

For Appellant: Shri.Heera Ram.ARFor Respondent: Shri.Manoj Sinha.DR

Section 135Section 143(2)Section 143(3)Section 31Section 37

Learned CIT (A) ought to have noted that what is covered in Explanation 2 to Sec. 37 (1) of the Act is the CSR expenditure incurred in terms of sec. 135 of the Companies Act 2013 only and not the expenses incurred for the purpose of business. The Learned ... perusal of financial statements found that the assessee has debited a sum of ₹ 4 Agappe Diagnostics Ltd. ITA NO.1870/MUM/2022. 20,52,044/- under the CSR expenditure in the Profit &loss Account. Further, the assessee has disallowed a sum of ₹ 18,42,830/- in the computation of income. The A.O. required

M/S Bosch Limited, Bangalore vs. Assistant Commissioner of Income Tax Ltu Circle-1, Bangalore

In the result, appeal of the assessee is partly allowed

ITA 1629/BANG/2018[2013-14]Status: DisposedITAT Bangalore13 Sept 2022AY 2013-14

Bench: Shri N.V. Vasudevan & Ms. Padmavathy Sassessment Year : 2013-14 Bosch Limited, Vs. The Assistant Commissioner Hosur Road, Adugodi, Of Income Tax, Ltu, Bangalore – 560 030. Circle 1, Pan: Aaacm 9840P Bangalore. Appellant Respondent Appellant By : Shri Percy Pardiwala, Advocate Respondent By : Shri V S Chakrapani, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 01.09.2022 Date Of Pronouncement : 13.09.2022 O R D E R Per Padmavathy S.2. This Appeal Is Against The Order Of The Cit(Appeals), Bangalore-9, Bangalore Dated 31.3.2018 For The Assessment Year 2013- 14. 3. The Assessee Raised Grounds Pertaining To The Following Issues:- Deduction U/S. 35(2Ab) Computed On Net Expenditure As Opposed To Gross Expenditure Disallowance Of Provision For Bad & Doubtful Debts I) Disallowance Of Provision For Long Term Service Award Disallowance Of Expenditure U/S. 14A Of The Act Ii) Page 2 Of 67

For Appellant: Shri Percy Pardiwala, AdvocateFor Respondent: Shri V S Chakrapani, CIT(DR)(ITAT), Bengaluru

Section 14ASection 35Section 37Section 43BSection 80J

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 us/. 37(1). The addition made in this regard is deleted. EXPENDITURE ON PURCHASE OF APPLICATION SOFTWARE 52. Ground No.8 raised

Schneider Electric It Business India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Ltu, Circle-2, Bangalore

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

ITA 185/BANG/2022[2017-18]Status: DisposedITAT Bangalore01 Sept 2022AY 2017-18

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.185/Bang/2022 Assessment Year: 2017-18

For Appellant: Shri Rohit Tiwari, A.RFor Respondent: Shri Manjunath Karkihalli, D.R

Section 143(3)Section 144BSection 144C(13)Section 92D

were not eligible for the said deduction under section 80G of the Act. 5.2. That the Ld. AO/ Ld. DRP failed to appreciate that CSR expenditure is disallowed only under section 37 of the Act and which does not restrict the Appellant from claiming deduction under any other provisions ... were not eligible for the said deduction under section 80G of the Act. 5.2. That the Ld. AO/ Ld. DRP failed to appreciate that CSR expenditure is disallowed only under section 37 of the Act and which does not restrict the Appellant from claiming deduction under any other provisions

Citrix R & D India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 2(1)(1), Bangalore

In the result, the appeal filed by the assessee stands allowed partly as indicated herein above

ITA 220/BANG/2021[2016-17`]Status: DisposedITAT Bangalore25 Aug 2022

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 220/Bang/2021 Assessment Year : 2016-17 M/S. Citrix R&D India Pvt. Ltd., The Deputy Prestige Dynasty, Commissioner Of Ground Floor, Income Tax, 33/2, Ulsoor Road, Circle – 2(1)(1), Bangalore – 560042. Vs. Bangalore. Pan: Aabcn3639C Appellant Respondent Assessee By : Shri Sumit Khurana, Ca Revenue By : Shri M. Mathivanan, Cit-Dr Date Of Hearing : 04-07-2022 Date Of Pronouncement : 25-08-2022 Order Per Beena Pillaipresent Appeal By The Assessee Has Been Filed By Assessee Against The Assessment Order Dated 30/03/2021 Passed By The National E-Assessment Centre, Delhi Relating To Assessment Year 2016-17 On Following Grounds Of Appeal: “The Grounds Mentioned Herein By The Appellant Are Without Prejudice To One Another. 1. That The Order Passed By The Learned Ao To The Extent Prejudicial To The Appellant, Is Bad In Law & Liable To Be Quashed. Transfer Pricing - 2. That The National E-Assessment Centre, Delhi / Deputy Commissioner Of Income Tax, Circle 2(1)(1), Bangalore ("Assessing Officer" Or "Learned Ao") & The Dispute Resolution Panel - 1 ("Learned Panel" Or "Learned Drp")

For Appellant: Shri Sumit Khurana, CAFor Respondent: Shri M. Mathivanan, CIT-DR

assessment order the Ld.AO made further additions. 2.9 The Ld.AO noted that during the year under consideration, the assessee spent Rs.12,26,000/- towards CSR expenditure as per section 135 of Companies Act, 2013. It is submitted that the assessee in its return of income, disallowed the said expenditure ... explanation 2 of section 37 of the Act. Further, the CSR expenditure to the extent of Rs.10,00,000/- was made to the eligible entity registered under section 35AC/80G of the Act. The assessee thus claimed Rs.5,00,000/- under section 35AC which was contributed to Karunashraya, the receipt

M/S. the Sandur Manganese & Iron Ores Ltd, Sandur vs. Assistant Commissioner of Income Tax, Circle-1, Bellary

In the result, both the appeals filed by the assessee stands partly allowed

ITA 1965/BANG/2018[2015-16]Status: DisposedITAT Bangalore29 Jun 2022AY 2015-16

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri S. Parthasarathi

Section 37(1)

IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL

M/S. the Sandur Manganese & Iron Ores Ltd, Sandur vs. Assistant Commissioner of Income Tax, Circle-1, Bellary

In the result, both the appeals filed by the assessee stands partly allowed

ITA 1964/BANG/2018[2012-13]Status: DisposedITAT Bangalore29 Jun 2022AY 2012-13

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri S. Parthasarathi

Section 37(1)

IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL

V S Lad & Sons, Sandur vs. Assistant Commissioner of Income Tax Circle-1, Bellary

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

ITA 611/BANG/2019[2012-13]Status: DisposedITAT Bangalore06 Jun 2022AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Sri Ramasubramaniyan, A.RFor Respondent: Sri V.S. Chakrapani, D.R

Section 127Section 143(2)Section 143(3)

allowable as expenditure. 10. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in holding that the CSR expenditure of Rs. 1,30.667 is not allowable as expenditure. Grounds for the A.Y. 2013-14:- 1. That the order of the learned Commissioner of Income ... treated as income of the appellant. 10.That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in holding that the CSR expenditure of Rs. 6,30,000 is not allowable as expenditure., 11. That the learned Commissioner of Income Tax (Appeals) erred

V S Lad & Sons, Sandur vs. Income Tax Officer Wad-1, Hospet

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

ITA 342/BANG/2019[2014-15]Status: DisposedITAT Bangalore06 Jun 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Sri Ramasubramaniyan, A.RFor Respondent: Sri V.S. Chakrapani, D.R

Section 127Section 143(2)Section 143(3)

V S Lad & Sons, Bengaluru vs. Assistant Commissioner of Income Tax Circle-1, Bangalore

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

ITA 341/BANG/2019[2013-14]Status: DisposedITAT Bangalore06 Jun 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Sri Ramasubramaniyan, A.RFor Respondent: Sri V.S. Chakrapani, D.R

Section 127Section 143(2)Section 143(3)

M/S Xindia Steels Limited, Koppal vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, the appeal by the assessee is allowed

ITA 361/BANG/2019[2014-15]Status: DisposedITAT Bangalore31 May 2022AY 2014-15

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy Sassessment Year : 2014-15

For Appellant: Smt. Soumya K., AdvocateFor Respondent: Shri Sankar Ganesh, Jt.CIT(DR)(ITAT), Bengaluru

Section 143

this Tribunal in the case of M/s. The Sandur Manganese & Iron Ores Ltd. in ITA Nos.1515 to 1517/Bang/2015 dated 06.10.2021 wherein the issue of CSR expenditure was considered elaborately and held as under:- “7.5 We heard rival contentions and perused the record. We notice that the facts prevailing

Pegasus Properties P. Ltd., Pune vs. Dy CIT, CC-2(3), Mumbai

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

ITA 943/MUM/2021[2015-16]Status: DisposedITAT Mumbai19 May 2022AY 2015-16

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Rajan VoraFor Respondent: Shri Dhramveer Singh

Section 153Section 153ASection 153CSection 22Section 23Section 23(4)

granted in respect of eligible donations of Rs. 62,00.000 made from the CSR expenses 24. During the year the Appellant had incurred CSR expenditure of Rs. 62,00,000. These expenses were in the form of donations to the charitable organizations working for the promotions of education and other ... under section 80G should be allowed in respect of eligible donations made by the Appellant from the CSR expenses. It was also submitted that CSR expenditure is entitled for deduction under section 80G of the Act. In this regard, the Appellant placed reliance on the decision of the Bangalore ITAT

M/S Bangalore Electricity Supply Company Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-1(1)(2), Bangalore

In the result, the appeals filed by the assessee are allowed for statistical purposes

ITA 253/BANG/2019[2014-15]Status: DisposedITAT Bangalore13 May 2022AY 2014-15

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Abhishek, CAFor Respondent: Karkihalli, CIT-DR) &

Section 115JSection 158ASection 37

capitalised and as such this claim cannot be allowed as revenue expenses. In the result, this ground is dismissed.” 3.1 In respect of the CSR expenditure being disallowed, the Ld.CIT(A) was of the opinion that the said expenditure could not Page 5 of 12 ITA Nos. 252 & 253/Bang/2019 ... upheld. Accordingly, ground nos. 2-3 raised by assessee stands dismissed. 5. Next common ground in both appeals relates to the disallowance of CSR expenditure. Both the authorities below have disallowed the claim by applying Explanation 2(ii) to Section 37(1) which is prospective in nature. The said explanation

M/S Bangalore Electricity Supply Company Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-1(1)(2), Bangalore

In the result, the appeals filed by the assessee are allowed for statistical purposes

ITA 252/BANG/2019[2013-14]Status: DisposedITAT Bangalore13 May 2022AY 2013-14

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Abhishek, CAFor Respondent: Karkihalli, CIT-DR) &

Section 115JSection 158ASection 37

Sterling Investment Corporation P. Ltd., Mumbai vs. CIT-Appeals-8, Mumbai

In the result, impugned order is set aside and appeal of the assessee is allowed

ITA 1667/MUM/2020[2015-16]Status: DisposedITAT Mumbai17 Mar 2022AY 2015-16

Bench: Shri Vikas Awasthy & Shri Prashant Maharshiआअसं. 1667/मुं/2020(िन.व.2015-16) Sterling Investment Corporation : अपीलाथ"/ Appellant Pvt Ltd, 41/44, S P Centre, Minoo Desai Marg, Colaba, Mumbai Pan: Aaaccs5467L बनाम/ Vs. Commissioner Of Income Tax – Appeals-(8) : ""थ"/ Respondent Mumbai

For Appellant: Shri Rajan VoraFor Respondent: Shri Milind Chavan

Section 135Section 271(1)(c)Section 37Section 37(1)

short, ‘CSR’). The Ld.AR submitted that assessment year 2015-16 was the first year for disallowing expenditure under CSR. The assessee, inadvertently, claimed CSR expenditure. During assessment proceedings, the assessee suo motu revised the computation of income and disallowed the expenditure. The Ld.AR referred to the revised computation at pages ... income and high loans / advances / investments; and (2) Investments in unlisted equities. No enquiry was made by the assessing officer with respect to CSR expenditure. The assessee, on realising its mistake, revised the computation of income and suo motu disallowed expenditure of Rs.58,16,000/- against CSR. The error

Mysore Minerals Limited (Now Known As Karnataka State Minerals Corporation Limited), Bengaluru vs. Deputy Commissioner of Income Tax, Circle- 4(1)(2), Bengaluru

In the result, both the appeals are allowed

ITA 465/BANG/2020[2014-15]Status: DisposedITAT Bangalore07 Mar 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru

Section 143(3)Section 147Section 148

consequently assessment order u/s. 143(3) r.w.s. 147 of the Act was framed by the AO making addition on account of disallowance of CSR expenditure of RS.3,20,79,967. 3. Now the contention of the ld. AR is that this issue was already subject matter of original assessment ... raised various queries in his letter dated 5.11.2015 for which the assessee replied vide his letter dated 4.1.2016 relating to CSR expenditure as follows:- “13. Corporate Social Responsibility expenses – Rs.3,20,79,967 – Ledger account copies along with a few bills are enclosed.” 4. According to the ld. AR, considering

Mysore Minerals Limited (Now Known As Karnataka State Minerals Corporation Limited), Bengaluru vs. Assistant Commissioner of Income Tax, Circle- 4(1)(2), Bengaluru

In the result, both the appeals are allowed

ITA 464/BANG/2020[2013-14]Status: DisposedITAT Bangalore07 Mar 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru

Section 143(3)Section 147Section 148

M/S. Infinera India Private Limited, Bangalore vs. Joint Commissioner of Income Tax, Special Range- 3, Bangalore

In the result, the appeal filed by the assessee is treated as partly allowed for statistical purposes

ITA 2589/BANG/2019[2015-16]Status: DisposedITAT Bangalore23 Feb 2022AY 2015-16

Bench: Shri George George K. & Shri B.R. Baskaranit(Tp)A No.2589/Bang/2019 Assessment Year: 2015-16

For Appellant: Shri Narendra Kumar Jain, A.RFor Respondent: Ms. Neera Malhotra, D.R

Section 80G

profession. 11. This amendment will take effect from 1/04/2015 and will, accordingly, apply to assessment year 2015-16 and subsequent years. 12. Thus, CSR expenditure is to be disallowed by new Explanation 2 to section 37(1), while computing Income under the Head ‘Income form Business and Profession’. Further, clarification ... 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 expenditure cannot be allowed under the existing provisions of section