CSR spend allowance under section 80G

Facts:

Assessee spent CSR obligatory expenses as per Companies act 2013 and claimed 50% deduction of the same under section 80G. Revenue disallowed the claim under section 80G citing that due to legal embargo in allowing CSR expense under section 37(1) the same cannot be allowed indirectly under section 80G. On appeal -

Held in favour of the assessee that the provisions of section 37(1) prohibiting CSR spend is applicable only for computation of business income and section 80G is deduction against total income. The AO was instructed to verify and treat the claim of the assessee on merits.

Ed. Note: Decision pertains to assessment year 2020-21.

Case: Synergia Lifesciences (P) Ltd. v. Dy. CIT 2023 TaxPub(DT) 3793 (Mum-Trib)