#CSR expenditure

The ITAT Bangalore ruled that public sector banks can claim CSR spending and 60% depreciation on ATMs as allowable business expenses under Section 36(1)(viii), thereby excluding them from Section 115JB book profit tax. This sets a critical precedent for the banking sector, affirming that regulatory compliance costs and infrastructure investments essential to modern banking operations qualify as genuine business expenditures, not disallowable non-business outlays.

The ITAT Delhi has ruled that corporate social responsibility (CSR) expenditures under the Companies Act, 2013 qualify for income tax deduction under Section 80G, provided the recipient institution is duly registered under the Income Tax Act. This clarifies a long-standing ambiguity for businesses and aligns CSR compliance with tax incentives, impacting thousands of corporate donors nationwide.

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.

ITAT Mumbai has ruled that corporate social responsibility donations qualify for deduction under Section 80G of the Income Tax Act if made to an approved entity, regardless of whether the expense was claimed as a business deduction under Section 37. This clarifies that CSR spending can be treated as charitable contribution for tax purposes, opening a critical pathway for companies to optimize compliance without double-counting expenditures.

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.

ITAT Pune rules that CSR contributions to funds like the PM Relief Fund are eligible for deduction under Section 80G of the Income Tax Act, unless specifically barred by statute. The ruling clarifies that the burden of proof lies on the revenue to demonstrate exclusion, impacting corporate tax planning and compliance for CSR expenditures.