Case Law Analysis
|Income Tax Appellate Tribunal
Section 13(1)(c)(ii) IT Act | Refund of CSR Funds to Donor Does Not Constitute Direct/Indirect Benefit : ITAT Delhi
The ITAT Delhi has ruled that returning excess CSR funds to the original donor does not violate Section 13(1)(c)(ii) of the Income Tax Act, as it lacks the element of benefit to a prohibited person. This clarifies that charitable trusts can return unutilized corporate donations without forfeiting their tax exemption under Section 11, providing critical relief to NGOs managing CSR compliance.