#CSR

ITAT Delhi allowed Section 80G deduction for CSR donations to registered entities, ruling that the Section 37(1) bar on deducting CSR spend as business expense does not preclude a separate charitable deduction. The bench followed multiple coordinate rulings to restore double tax relief for companies routing mandatory CSR contributions through eligible donees.

The ITAT Ahmedabad has ruled that corporate social responsibility donations made to institutions approved under Section 80G(5) are eligible for tax deduction, even when the expenditure is mandated under Section 135 of the Companies Act. This prevents double disallowance - once under Section 37(1) as non-business expenditure and again under Section 80G as ineligible donation - clarifying that statutory CSR obligations do not negate charitable intent for tax purposes. The decision impacts all companies balancing compliance with tax planning under the Income Tax Act.