Section 80G of the Income Tax Act
Income-tax Act, 2025: s.133
Section 80G of the Income-tax Act, 1961 corresponds to section 133 (Deduction in respect of donations to certain funds, charitable institutions, etc) of the Income-tax Act, 2025.
Read section 133 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 80G is Sole Trustee, Loka Shikshana Trust v. CIT (101 ITR 234), cited in 323 of the 6,482 judgments on BharatTax that turn on this section.
Leading authorities on Section 80G
This case defines 'education' under Section 2(15) of the Income Tax Act as systematic instruction, schooling, or training given to the young for preparation for the work of life. It clarifies that 'education' in this context has a narrow meaning, not extending to every acquisition of further knowledge.
The Principal Commissioner of Income Tax (PCIT) cannot invoke revisionary powers under Section 263 merely on the ground of "inadequate enquiry" by the Assessing Officer (AO) if the AO has conducted an enquiry, examined evidence, and formed a possible view. For Section 263 to apply, the PCIT must demonstrate that the assessment order is both erroneous (contrary to law) and prejudicial to the revenue.
When substantial justice and technical considerations are in conflict, substantial justice should be prioritized. Condoning delay requires a cautious approach without malafide or dilatory tactics, and 'sufficient cause' should be interpreted liberally to advance substantial justice.
An institution engaged in the advancement of general public utility retains its charitable character and eligibility for exemptions under Section 11 or approval under Section 10(23C)(iv) provided profit is not its predominant motive, even if it generates incidental surpluses or collects fees.
For registration under Section 12AA, the Commissioner (Exemptions) must examine the objects of the trust and the genuineness of its proposed activities, even if the trust has not yet commenced actual charitable activities or incurred expenditure.
When computing deduction under Section 80IA, specifically for inter-unit transfer of power, the benefit cannot be claimed based on rates chargeable by distribution licensees to consumers. The deduction must be computed based on the rate fixed by the Tariff Regulation Commission for sale by electricity generating companies.
Disallowance under Section 14A for expenditure incurred to earn exempt dividend income (under Section 10(34)) is permissible. The assessee bears the burden to show the source of funds for acquiring shares, regardless of whether those shares are old or recently acquired.
The opportunity of hearing provided to an assessee must be real, effective, and realistic, not merely notional, and tax authorities are incumbent to decide cases on their merits after affording due opportunity.
An assessment order is not erroneous and prejudicial to the revenue merely because it does not explicitly discuss an issue for which the Assessing Officer had raised queries and the assessee had provided a response. In such a scenario, the Principal Commissioner cannot invoke revisionary powers under Section 263.
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).