ACG Pam Pharma Technologies Private Limited Vs PCIT (ITAT Mumbai)
Income Tax Appellate Tribunal (ITAT), Mumbai Bench, in a recent ruling, has quashed an order passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income Tax Act, 1961, against ACG Pam Pharma Technologies Private Limited. The PCIT’s order had sought to deny a deduction claimed by the assessee under Section 80G of the Act for donations categorized as Corporate Social Responsibility (CSR) expenses. The ITAT’s decision, pronounced on July 1, 2025, effectively restores the original assessment order passed by the Assessing Officer (AO).
Background of the Case
ACG Pam Pharma Technologies Private Limited, a company involved in broking and distribution of financial products, had made a donation of Rs. 24,20,000 to Axis Foundation during the assessment year 2020-21. While the assessee classified this amount as CSR expenditure under Section 135 of the Companies Act, 2013, and suo motu disallowed it under Section 37(1) of the Income Tax Act (in accordance with Explanation 2 to Section 37), it simultaneously claimed a deduction for the same amount under Section 80G of the Act in its return of income.
The AO, after examining the computation of income and tax audit report, allowed the Section 80G claim in the assessment order dated September 24, 2022.
