Mandatory CSR Expenditure allowable Under Section 80G: ITAT Delhi

Cheil India Private Limited Vs DCIT (ITAT Delhi) In the case of Cheil India Private Limited vs. DCIT, ITAT Delhi addressed the disallowance of a ₹2.57 crore deduction claimed under Section 80G of the Income Tax Act, 1961, for CSR expenditures. The National Faceless Assessment Centre (NFAC) had denied the deduction, reasoning that CSR expenses, as mandated under Section 135 of the Companies Act, 2013, lack the voluntary nature required for qualifying as a donation. Consequently, these expenses were classified as statutory obligations rather than donations eligible for tax deductions. The asse...