Case Law Details
J K Investo Trade (India) Limited Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that deduction u/s 80G of the Income Tax Act duly available irrelevant of the fact that corpus contribution to the donee relates to the CSR activities.
Facts- The assessee company is engaged in the business of manufacturing and wholesale and retail trade and had been deriving income from business and profession. The assessee’s case was selected for complete scrutiny and the assessment order was passed by AO u/s. 143(3) of the Act where the AO made disallowance u/s. 80G of the Act claimed as deduction under Chapter VIA of the Act on the ground that the assessee’s claim of deduction u/s. 80G of the Act pertains to donation related to CSR expenses which was restricted as per the provisions to Explanation 2 to Section 37(1) of the Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that we are of the considered view that the assessee is eligible to claim deduction u/s. 80G irrelevant of the fact that the corpus contribution made by the assessee to the donee relates to the CSR activities. The decision relied upon by the assessee on identical facts supports the claim of the assessee. The ld. A.O. is, therefore, directed to allow the claim of the assessee subject to the verification and the genuinety of the fact that the donation made to the donee was eligible for deduction as per the provision of section 80G of the Act.
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