FNF India (P) Ltd. v. Asstt. CIT [ITA No.
1565/Bang/2019, dt. 5-1-2021] : 2021 TaxPub(DT) 169 (Bang-Trib)
Allowability of charitable donations under section 80G vs.
Disallowance of the same under CSR (Corporate Social Responsibility) spend
(Explanation 2 to section 37(1))
Facts:
Assessee had made some donations which were eligible for
CSR spend bereft which they claimed the same under section 80G. It was the case
of the revenue that CSR spend is a disallowable expenditure due to Explanation
2 to section 37(1) which was upheld by the first appellate authority. On
further appeal by the assessee --
Held in favour of the assessee that they were entitled to
the deduction under section 80G.
The spheres of Explanation 2 to section 37(1) and section
80G operate in two different zones. Explanation 2 to section 37(1) restricts
expenditure from section 30 to 36 while 80G is a deduction from total income
based on certain conditions. It is also noticed that under section 80G(2)
(iiihk) and (iiihl) there are certain spends which are ineligible under section
80G which are CSR in nature. As long as the spend of the assessee did not fall
in this they were eligible for the 80G deduction.
Applied:
Allegis Services (India) Pvt. Ltd. v. ACIT [ITA No.
1693/Bang/2019 Order, dated 29-4-2020] : 2020
TaxPub(DT) 2149 (Bang-Trib)