CSR Donation Eligible for Section 80G Despite Section 37(1) Disallowance: Delhi ITAT

Advertisement Ratna Sagar Pvt. Ltd. Vs ACIT (ITAT Delhi) The Delhi ITAT allowed the assessee’s appeal for AY 2018-19 and deleted the disallowance of ₹12,50,000, representing 50% of a ₹25,00,000 donation paid to Saint Francis Home (Regd.) Society, Pathankot out of CSR funds and claimed as deduction under Section 80G of the Income-tax Act. The Assessing Officer had denied the deduction on the ground that the payment constituted CSR expenditure and was therefore not allowable under the Act. The CIT(A) upheld the Assessing Officer’s action. Before the Tribunal, the assessee contended th...