Ampacet Speciality products Private Limited Vs DCIT (ITAT Pune)
In Ampacet Speciality Products Private Limited vs DCIT, the appeal before the Income Tax Appellate Tribunal, Pune, pertained to Assessment Year 2020–21 and arose from an order passed under section 143(3) read with section 144B of the Income Tax Act, 1961. The assessee challenged multiple issues including disallowance of deduction under section 80G for CSR expenditure, incorrect computation of income, levy of interest, and initiation of penalty proceedings.
The primary issue related to disallowance of ₹50,50,000 claimed under section 80G on account of Corporate Social Responsibility (CSR) expenditure. The assessee had made donations to the Prime Minister Relief Fund and the Maharashtra Chief Minister’s Relief Fund as part of its CSR obligations and claimed deduction under section 80G. The Assessing Officer disallowed the claim, and the Commissioner (Appeals) upheld the disallowance.
The Tribunal examined the statutory framework under the Companies Act, 2013 and CSR Rules, noting that CSR expenditure is mandatory for certain companies and must be spent on specified activities. It also observed that while CSR expenditure is not allowable as business expenditure under section 37(1) due to Explanation 2, the law does not prohibit deduction under other provisions of the Act if conditions are satisfied.
