CSR May Be Mandatory, But 80G Still Available! ITAT Gives Big Relief to Companies

Delhi Duty Free Service [P] Ltd Vs DCIT (ITAT Delhi) In these three appeals, the core dispute was whether CSR expenditure, though disallowed as business expense, could still qualify for deduction u/s 80G. AO held that CSR is a compulsory statutory obligation u/s 135 of Companies Act & therefore cannot be treated as a voluntary donation eligible u/s 80G. CIT(A) upheld the disallowance. Assessee argued that CSR payments were made to entities duly approved u/s 80G & relied on various Delhi ITAT decisions including InterGlobe Technology Quotient & Max New York Life Insurance Co. to sub...