INCOME TAX ACT, 1961

Section 80G

Deduction under 80G - Donation - Allowability - Donation forming part of CSR expenses

Assessee-company claimed deduction under section 80G towards donation paid. AO was of the opinion that the claim made under section 80G was not allowable as the amount was forming part of CSR expenses debited to profit and loss account. He held that the donation made outside CSR expenses was only eligible to be claimed under section 80G. Held: All payments forming part of CSR do not form part of profit and loss account for computing income under the head, “Income from Business and Profession”. In instant case, some payments forming part of CSR were claimed as deduction under section 80G, for computing “Total Taxable Income”, which had been disallowed by AO. However, the assessee could not be denied the benefit of claim under Chapter VI A, which was considered for computing 'Total Taxable Income” because if the assessee was denied that benefit merely because such payment formed part of CSR, it would lead to double disallowance. Accordingly, the AO erred in denying claim of assessee under section 80G. Further, it was found that the AO did not verify the nature of payments qualifying exemption under section 80G and quantum of eligibility as per section 80G(1). Therefore, the matter was remanded to the AO for verifying conditions necessary to claim deduction under section 80G.

REFERRED :

FAVOUR : Matter remanded

A.Y. :

SUBSCRIBE FOR FULL CONTENT