Credit Suisse Securities (India) Private Limited Vs PCIT (ITAT Mumbai)
CSR May Be Compulsory, But 80G Deduction Is Not Automatically Forbidden — PCIT Cannot Use Section 263 Merely Because Another View Is Possible
Summary: The Mumbai ITAT quashed revisionary proceedings u/s 263 involving the increasingly important controversy of deduction u/s 80G for donations forming part of CSR expenditure. The Tribunal held that where the AO had specifically examined the claim during scrutiny & the eligibility of CSR expenditure for deduction u/s 80G was itself a highly debatable issue supported by several Tribunal decisions, the AO’s acceptance of the claim constituted a plausible view. A mere difference of opinion between the PCIT & AO could not render the assessment order erroneous & prejudicial to the interests of Revenue.
Facts — CSR Disallowed u/s 37(1), But 80G Deduction Claimed Separately
The assessee, Credit Suisse Securities (India) Pvt. Ltd., was engaged primarily in stock broking, sub-broking & related activities. For AY 2020-21, it filed its return declaring total income of ₹515.26 crore. Its case was selected for scrutiny under CASS & assessment was completed u/s 143(3) r.w.s. 144B on 27.09.2023.
The assessee had debited CSR expenditure of ₹7,59,81,082 to its P&L account. While computing business income, it added back the CSR expenditure u/s 37(1). However, in respect of eligible payments/donations, it separately claimed deduction of ₹3,68,45,882 u/s 80G.
