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“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
93
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
74
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
36
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
30
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
24
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
24
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
24
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
24
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

Assistant Commissioner of Income-Tax, Bangalore vs. M/S.Gmr Hyderabad International Airport Ltd., Bangalore

ITA 633/BANG/2017[2009-10]Status: DisposedITAT Bangalore11 Feb 2022AY 2009-10

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.Sunil Kumar Jain, CAFor Respondent: Sri.Muzaffar Hussain, CIT-DR
Section 14ASection 40

development expenses to the files of the A.O. for de novo consideration. For these assessment years the only difference is that most of the CSR expenditure were incurred directly by the assessee as per the details given (supra). The A.O. shall take into consideration the judicial pronouncements cited supra

M/S.Gmr Hyderabad International Airport Limited, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

ITA 620/BANG/2017[2010-11]Status: DisposedITAT Bangalore11 Feb 2022AY 2010-11

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.Sunil Kumar Jain, CAFor Respondent: Sri.Muzaffar Hussain, CIT-DR
Section 14ASection 40

development expenses to the files of the A.O. for de novo consideration. For these assessment years the only difference is that most of the CSR expenditure were incurred directly by the assessee as per the details given (supra). The A.O. shall take into consideration the judicial pronouncements cited supra

M/S. Gms Hyderabad International Airport Limited, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

ITA 604/BANG/2017[2013-14]Status: DisposedITAT Bangalore11 Feb 2022AY 2013-14

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.Sunil Kumar Jain, CAFor Respondent: Sri.Muzaffar Hussain, CIT-DR
Section 14ASection 40

development expenses to the files of the A.O. for de novo consideration. For these assessment years the only difference is that most of the CSR expenditure were incurred directly by the assessee as per the details given (supra). The A.O. shall take into consideration the judicial pronouncements cited supra

M/S. Gmr Hyderabad International Airport Limited, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

ITA 603/BANG/2017[2012-13]Status: DisposedITAT Bangalore11 Feb 2022AY 2012-13

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.Sunil Kumar Jain, CAFor Respondent: Sri.Muzaffar Hussain, CIT-DR
Section 14ASection 40

development expenses to the files of the A.O. for de novo consideration. For these assessment years the only difference is that most of the CSR expenditure were incurred directly by the assessee as per the details given (supra). The A.O. shall take into consideration the judicial pronouncements cited supra

Security Printing & Minting Corporation of India Ltd., New Delhi vs. Addl. CIT, Range- 8, New Delhi

In the result, the appeal of the assessee is allowed

ITA 475/DEL/2018[2011-12]Status: DisposedITAT Delhi18 Jan 2022AY 2011-12

Bench: Sh. Amit Shukladr. B. R. R. Kumar(Through Video Conferencing)

For Appellant: Sh. Y. K. Maghan, CAFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 10(34)Section 143(3)Section 14ASection 263Section 40

Delhi, dated 09.11.2017. 2. Following grounds have been raised by the assessee: a. Deduction u/s 14A b. Claim of CSR expenditure 3. The assessee has also raised additional grounds of appeal: “That on the facts and in the circumstances of the case and in the law, the Assessing Officer ought ... Finance under a MoU for the purpose. The assessee at some place of its industrial units has its own staff colonies and quarters where CSR expenditure have been incurred for the maintenance of pump house, K.V. Station and maintenance of staff quarters. Primary ambulance and medical aid to dispensary

M/S Kumaraswamy Mineral Export Pvt. Ltd., Bengaluru vs. Joint Commissioner of Income Tax Bellary Range, Bellary

In the result, the appeal of the assessee stands allowed

ITA 1654/BANG/2018[2011-12]Status: DisposedITAT Bangalore04 Jan 2022AY 2011-12

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2011-12 M/S. Kumaraswamy Mineral Exports Pvt. Ltd., [For & On Behalf Of The Joint Erstwhile Partnership Commissioner Of Firm M/S. Kumaraswamy Income Tax, Mineral Exports], Bellary Range, No. 58, Cunningham Vs. Bellary. Road Cross, Bangalore – 560 052. Pan: Aabfk8539K Appellant Respondent : Shri S.V. Ravishankar, Assessee By Advocate : Shri Sumer Singh Meena, Revenue By Cit Dr(Osd) Date Of Hearing : 21-12-2021 Date Of Pronouncement : 04-01-2022 Order Per Beena Pillaipresent Appeal Has Been Filed By Assessee Against The Order Dated 22/03/2018 Passed By Ld.Cit(A), Gulbarga For Assessment Year 2011-12 On Following Grounds Of Appeal: “1. The Order Passed By The Learned Commissioner Of Income-Tax [Appeals]-4, Bengaluru Dated 22/03/2018 & The Order Of Assessment Passed By The Learned Assessing Officer Under Section 143 [3] Of The Act Dated 28/03/2014, In So Far As It Is Against The Appellant, Is Opposed To The Law, Weight Of Evidence, Probabilities, Facts & Circumstances In The Appellant'S Case.

For Respondent: Shri S.V. Ravishankar
Section 143Section 14ASection 234Section 37

contributing to the development of infrastructure of the country. Thus, it is submitted that the assessee incurred expenditure which is in the nature of CSR expenditure to the development of the country. The Ld.AR placed reliance on the parity of reasoning of the Hon'ble Madras High Court

Aksh Optifibre Ltd., New Delhi vs. JCIT, Special Range- 1, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 6504/DEL/2018[2015-16]Status: DisposedITAT Delhi29 Nov 2021AY 2015-16

Bench: Sh. Anil Chaturvedi & Sh. Kuldip Singh(Through Video Conferencing) Aksh Optifibre Ltd. Vs. Jcit C/O. Kapil Goel, Advocate Special Range – 1, F-26/124, Sector-7, New Delhi Rohini, New Delhi-85 Pan No. Aaaca 0062 F (Appellant) (Respondent) Assessee By Shri Kapil Goel, Adv. Revenue By Ms. Kirti Sankartyan, Sr. D.R. Date Of Hearing: 18.11.2021 Date Of Pronouncement: 29.11.2021 Order Per Anil Chaturvedi, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 31.07.2018 Of The Commissioner Of Income Tax (Appeals) – 32, New Delhi Relating To Assessment Year 2015-16. 2. The Relevant Facts As Culled From The Material On Records Are As Under :

Section 143(2)Section 143(3)Section 14ASection 37Section 37(1)

course of assessment proceedings and on perusing the Audited Financial Report, AO noticed that assessee has debited Rs.33,80,000/- on account of CSR expenditure. AO was of the view that in view of the Explanation to Section 37 of the Act inserted by Finance (No.2) Act, 2014, expenditure ... decision in the case of Gail (India) Ltd. submitted that Hon’ble High Court has observed that Explanation – 2 only states that CSR expenditure shall not be deemed to be an expenditure for the business of assessee which does not mean that the claim of CSR expenses as a deduction

M/S. Hindustan Insecticides Ltd., New Delhi vs. DCIT (Ltu), New Delhi

In the result, appeal of the assessee is allowed

ITA 3772/DEL/2016[2011-12]Status: DisposedITAT Delhi24 Nov 2021AY 2011-12

Bench: Sh. Anil Chaturvedi & Sh. Kul Bharat(Through Video Conferencing) M/S. Hindustan Vs. Dcit (Ltu) Insecticides Ltd., New Delhi 2Nd Floor, Core-6, Scope Complex, 7, Lodhi Road, New Delhi-03 Pan : Aaach 0905 Q (Appellant) (Respondent) Assessee By Shri Rajesh Arora, C.A. Revenue By Shri Lakshminarayan, Sr. D.R. Date Of Hearing: 26.10.2021 Date Of Pronouncement: 24.11.2021 Order Per Anil Chaturvedi, Am :

Section 143(3)

vide order dated 29.07.2016 in ITA No.1784/Del/2012 decided the issue in favour of the assessee by observing as under: “11. Similarly, with respect to CSR expenditure vide Sl. No. 4 of the letter dated 10.11.2009 the details of other expenses wherein these expenses are grouped asking for the purpose

Addl. CIT, Special Range-7, New Delhi vs. Pec Ltd., New Delhi

Accordingly, assessing officer is directed to delete this addition and ground of appeal 2 is allowed

ITA 6446/DEL/2017[2013-14]Status: DisposedITAT Delhi20 Oct 2021AY 2013-14

Bench: Shri O.P. Kant & Shri Kuldip Singh

For Appellant: Shri Damanpreet Singh, CAFor Respondent: Shri Anil Gandhi, Senior DR
Section 135Section 37Section 37(1)

assessment i.e. 2013-14. Moreover, it is incomprehensible as to how the AO has allowed the amount of Rs.79,50,000/- out of total CSR expenditure of Rs.4.58 crores and disallowed the remaining amount of Rs.3,79,19,732/-. So, we are of the considered view that

ACIT, Circle- 17(2), New Delhi vs. National Fertilizers Ltd., New Delhi

Appeal are dismissed

ITA 3698/DEL/2018[2014-15]Status: DisposedITAT Delhi30 Sept 2021AY 2014-15

Bench: Ms Suchitra Kamble & Sh. Prashant Maharishi

Section 145Section 14ASection 32Section 37(1)Section 40

erred, both on facts and in law in confirming the disallowance of an amount of Rs.76,00,000/- made by AO on account of CSR Expenditure incurred by the assessee (ii) That the disallowance has been confirmed ignoring the submissions along with the evidences filed by the assessee in this ... regards to assessee’s appeal being ITA No. 3438/DEL/2018, the Ld. AR submitted that during the year assessee has incurred and claimed CSR expenditure of Rs. 76,00,000/-. These expenditure have been incurred in compliance of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility

ACIT, Circle- 17(2), New Delhi vs. National Fertilizers Ltd., New Delhi

Appeal are dismissed

ITA 3697/DEL/2018[2013-14]Status: DisposedITAT Delhi30 Sept 2021AY 2013-14

Bench: Ms Suchitra Kamble & Sh. Prashant Maharishi

Section 145Section 14ASection 32Section 37(1)Section 40

erred, both on facts and in law in confirming the disallowance of an amount of Rs.76,00,000/- made by AO on account of CSR Expenditure incurred by the assessee (ii) That the disallowance has been confirmed ignoring the submissions along with the evidences filed by the assessee in this ... regards to assessee’s appeal being ITA No. 3438/DEL/2018, the Ld. AR submitted that during the year assessee has incurred and claimed CSR expenditure of Rs. 76,00,000/-. These expenditure have been incurred in compliance of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility

National Fertilizers Ltd., New Delhi vs. DCIT, Circle- 17(2), New Delhi

Appeal are dismissed

ITA 3438/DEL/2018[2014-15]Status: DisposedITAT Delhi30 Sept 2021AY 2014-15

Bench: Ms Suchitra Kamble & Sh. Prashant Maharishi

Section 145Section 14ASection 32Section 37(1)Section 40

erred, both on facts and in law in confirming the disallowance of an amount of Rs.76,00,000/- made by AO on account of CSR Expenditure incurred by the assessee (ii) That the disallowance has been confirmed ignoring the submissions along with the evidences filed by the assessee in this ... regards to assessee’s appeal being ITA No. 3438/DEL/2018, the Ld. AR submitted that during the year assessee has incurred and claimed CSR expenditure of Rs. 76,00,000/-. These expenditure have been incurred in compliance of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility

National Fertilizers Ltd., New Delhi vs. DCIT, Circle- 17(2), New Delhi

Appeal are dismissed

ITA 3437/DEL/2018[2013-14]Status: DisposedITAT Delhi30 Sept 2021AY 2013-14

Bench: Ms Suchitra Kamble & Sh. Prashant Maharishi

Section 145Section 14ASection 32Section 37(1)Section 40

erred, both on facts and in law in confirming the disallowance of an amount of Rs.76,00,000/- made by AO on account of CSR Expenditure incurred by the assessee (ii) That the disallowance has been confirmed ignoring the submissions along with the evidences filed by the assessee in this ... regards to assessee’s appeal being ITA No. 3438/DEL/2018, the Ld. AR submitted that during the year assessee has incurred and claimed CSR expenditure of Rs. 76,00,000/-. These expenditure have been incurred in compliance of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility

Security Printing & Minting Corporation of India Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result both the appeals of the assessee are allowed

ITA 3686/DEL/2017[2013-14]Status: DisposedITAT Delhi16 Sept 2021AY 2013-14

Bench: Shri Amit Shukla & Shri N.K. Billaiya

For Appellant: Shri Y.K. Madan, CAFor Respondent: Shri Prakash Dubey, Sr. DR
Section 143(3)Section 14ASection 37

assessee has shown expenses on account of corporate social responsibility of Rs. 4.36 crore which otherwise is incorrect figure because the actual amount of CSR expenditure debited to the profit and loss account is Rs. 3.55 crore whereas it was in the assessment year 2012-13, the assessee has debited ... crore. Thus, it appears to be a typographical mistake. The details of CSR expenditure as given by the assessee before the authorities below are as under :- Sr. No. Project Amount 1. Construction of 10 Nos Primary School at Murshidabad 102.25 (WB). 2. Beautification and widening of the road leading from

Security Printing & Minting Corporation of India Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result both the appeals of the assessee are allowed

ITA 3685/DEL/2017[2012-13]Status: DisposedITAT Delhi16 Sept 2021AY 2012-13

Bench: Shri Amit Shukla & Shri N.K. Billaiya

For Appellant: Shri Y.K. Madan, CAFor Respondent: Shri Prakash Dubey, Sr. DR
Section 143(3)Section 14ASection 37

assessee has shown expenses on account of corporate social responsibility of Rs. 4.36 crore which otherwise is incorrect figure because the actual amount of CSR expenditure debited to the profit and loss account is Rs. 3.55 crore whereas it was in the assessment year 2012-13, the assessee has debited ... crore. Thus, it appears to be a typographical mistake. The details of CSR expenditure as given by the assessee before the authorities below are as under :- Sr. No. Project Amount 1. Construction of 10 Nos Primary School at Murshidabad 102.25 (WB). 2. Beautification and widening of the road leading from

Ntpc- Sail Power Co. Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 1859/DEL/2018[2014-15]Status: DisposedITAT Delhi27 Aug 2021AY 2014-15

Bench: Shri O. P. Kant & Shri K. N. Charya.Y. 2014-15

For Appellant: Sh. M. P. Rastogi, AdvocateFor Respondent: Sh. Gaurav Pundir, Sr. DR
Section 143(3)Section 37

prospective in nature and accordingly prior to 1.4.2013, CSR expenses are revenue in nature and allowable. We have gone through the details of CSR expenditure incurred by the assessee during the year under consideration i.e. assessment year 2011-12 and we find that the expenses have been incurred in respect ... prospective in nature and accordingly prior to 1.4.2013, CSR expenses are revenue in nature and allowable. We have gone through the details of CSR expenditure incurred by the assessee during the year under consideration i.e. assessment year 2011-12 and we find that the expenses have been incurred in respect

National Building Construction Corporation Ltd., New Delhi vs. Addlcit, Special Range-6, Neww Delhi

In the result, the appeal of the assessee is allowed

ITA 3819/DEL/2018[2014-15]Status: DisposedITAT Delhi11 Aug 2021AY 2014-15

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing] Assessment Year: 2014-15

Section 143(3)Section 244ASection 37(1)

year 2015-16. The relevant finding of the tribunal (supra) is reproduced as under: “17. AO has disallowed claim of the assessee company qua CSR expenditure by misinterpreting the provisions contained under section 37(1) of the Act by observing that since CSR expenditure is not incurred for the purpose ... defaulter to the Government. 9.6 The ITAT Mumbai bench in the case of Hindustan Petroleum Corporation Ltd. (96 ITD 186) had held CSR expenditure incurred by Government Undertaking is an allowable deduction. The relevant finding of the ITAT Mumbai Benches reads as follows:- “Expenditure incurred by assessee, a company owned

Hari Machines Ltd., New Delhi vs. DCIT, New Delhi

The appeal is dismissed

ITA 213/DEL/2017[2012-13]Status: DisposedITAT Delhi03 Aug 2021AY 2012-13

Bench: Shri Kul Bharat & Shri Prashant Maharishi(Through Video Conferencing) Hari Machines Ltd, Vs. Dcit, 4, Scindia House, Connaught Circle-11(1), Place, New Delhi New Delhi Pan: Aaach0868C (Appellant) (Respondent)

For Appellant: NoneFor Respondent: Ms. Anima Barnwal, Sr. DR
Section 143(3)Section 234BSection 37(1)

general in nature and therefore same is dismissed. 10. The second ground is in relation to disallowances of Rs. 4,74,192/- being CSR expenditure incurred by the assessee and claimed as deductible expenditure. The fact shows that the assessee has incurred the above expenditure at the instances of Government

National Building Construction Corporation Ltd., New Delhi vs. DCIT, Circle- 18(1), New Delhi

Appeals are disposed of by this common order

ITA 4287/DEL/2017[2012-13]Status: DisposedITAT Delhi26 Jul 2021AY 2012-13

Bench: Ms. Suchitra Kamblea N D Shri Prashant Maharishi

For Appellant: Shri Sachin Kumar, C.AFor Respondent: Shri Gaurav Pundir, Sr. D. R
Section 140ASection 143(3)Section 14ASection 244ASection 37(1)Section 40

case, the ld. CIT(A) is legally justified in deleting disallowance of Rs.25,00,000/- claimed by the assessee as Corporate Social Responsibility (CSR) expenditure incurred on awareness campaign ignoring the contents of Explanation 2 to section 37(1) of the Act? “ 04. The brief facts of the case shows ... Disallowance of Rs.1,92,30,000/- on account of non-deduction of tax on bank guarantee charges paid to various banks; c. Disallowance of CSR expenditure of Rs.2,20,84,000/-. 06. Assessee preferred an appeal before the ld. CIT (Appeals). The ld. CIT (Appeals) after considering the remand report

Addlcit, Special Range-6, Neww Delhi vs. National Building Construction Corporation Ltd., New Delhi

Appeals are disposed of by this common order

ITA 4165/DEL/2017[2012-13]Status: DisposedITAT Delhi26 Jul 2021AY 2012-13

Bench: Ms. Suchitra Kamblea N D Shri Prashant Maharishi

For Appellant: Shri Sachin Kumar, C.AFor Respondent: Shri Gaurav Pundir, Sr. D. R
Section 140ASection 143(3)Section 14ASection 244ASection 37(1)Section 40

case, the ld. CIT(A) is legally justified in deleting disallowance of Rs.25,00,000/- claimed by the assessee as Corporate Social Responsibility (CSR) expenditure incurred on awareness campaign ignoring the contents of Explanation 2 to section 37(1) of the Act? “ 04. The brief facts of the case shows ... Disallowance of Rs.1,92,30,000/- on account of non-deduction of tax on bank guarantee charges paid to various banks; c. Disallowance of CSR expenditure of Rs.2,20,84,000/-. 06. Assessee preferred an appeal before the ld. CIT (Appeals). The ld. CIT (Appeals) after considering the remand report