Gujarat State Financial Services Limited Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that the assessee was eligible for claim of deduction under Section 80G of the Act in respect of donation made to Mukhyamantri Shree Swachchta Nidhi Gujarat, as part of its CSR initiative. Accordingly, appeal of assessee allowed.
Facts- The case was selected for complete scrutiny assessment. In the course of assessment, AO made disallowance of Rs.1,78,71,274/- in respect of donation claimed as deduction u/s. 80G of the Income Tax Act, 1961 pertaining to expenditure relating to CSR activities. The assessment was completed u/s. 143(3) of the Act on 19.09.2022 at total income of Rs.495,20,10,250/-.
Aggrieved with the order of the Assessing Officer, the assessee had filed an appeal before the First Appellate Authority which was decided by the CIT(A) vide the impugned order and the appeal of the assessee was partly allowed.
Conclusion- On perusal of provisions of Section 80G of the Act, it is evident that the restriction on deductibility of donation made pursuant to CSR obligation is expressly provided under Section 80G(2)(a)(iiihk)/(iiihl) of the Act in respect of donation made to Swachh Bharat Kosh and Clean Ganga Fund, set up by the Central Government. Apart from the donation to these two funds, there is no restriction in respect of donation made to any other fund.
