CSR Expenditure Not Automatically Disqualify Section 80G Deduction as Both Provisions Operate Differently

First American (India) Pvt. Ltd. Vs ACIT (ITAT Bangalore) The appeal concerned the disallowance of a deduction of ₹90,81,516 claimed under Section 80G of the Income-tax Act for Assessment Year 2016-17. The assessee, engaged in BPO operations, software services, and IT infrastructure development and sales, had incurred expenditure towards Corporate Social Responsibility (CSR) activities and claimed a portion of those payments as eligible donations under Section 80G. During assessment proceedings, the Assessing Officer (AO) observed that the deduction claimed under Section 80G related to amoun...