Case Law Analysis
|Income Tax Appellate Tribunal
Section 80G Income Tax Act | CSR Expenditures to Approved Charities Qualify for Tax Deduction, Rejecting Double Disallowance Under Section 37(1) : ITAT Ahmedabad
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.