#Chapter VI-A

The ITAT Delhi has ruled that corporate social responsibility (CSR) donations meeting Section 80G conditions qualify for tax deduction, rejecting the Revenue’s attempt to disallow them under Section 37(1). This clarifies that Chapter VI-A benefits are independent of business expense disallowances, protecting companies that fulfill statutory CSR obligations while seeking legitimate tax incentives.

Madras High Court reinforces that deductions under Sections 80 IB and 80 HHC of the Income Tax Act must be computed independently, not sequentially. The ruling sets aside ITAT’s order, mandating reassessment in line with the Supreme Court’s precedent in Shital Fibers Ltd, impacting tax computation for export-oriented businesses.

ITAT Ahmedabad rules that CSR donations, even if mandatory under the Companies Act, qualify for deduction under Section 80G if the donee institution is approved. The tribunal rejects the tax department's argument that such expenditures, being obligatory, cannot be treated as voluntary donations for tax benefits. This clarifies that compliance with statutory CSR obligations does not preclude eligibility for Chapter VI-A deductions.