ACIT Vs Sikka Ports and Terminals Ltd. (ITAT Mumbai)
ITAT Mumbai held that deduction under section 80G of the Income Tax Act eligible towards donations, even if donations are part of Corporate Social Responsibility [CSR] expenditure. Thus, appeal of revenue dismissed.
Facts- Revenue has preferred the present appeal. The common issue contended by the Revenue in these appeals pertain to CIT(A) allowing the claim of the assessee under section 80G of the Income Tax Act, 1961 (the Act) towards the CSR spending and deleting the disallowance made under section 14A of the Act.
Conclusion- The provisions of section 80G does not impose any condition that the contribution should be voluntary and therefore when the CSR spend is evaluated independently under the provisions of the Act, in our considered view there is no restriction for the assessee to claim deduction under section 80G provided the CSR spend meets the conditions specified therein.
Held that there is no infirmity in the order of the CIT(A) in allowing the deduction under section 80G to the assessee towards donations made to M/s. Reliance Foundation and M/s. Shyam Kothari Foundation by placing reliance on the decision of the coordinate bench in the case of M/s. Naik Seafoods Pvt Ltd Vs. Pr.CIT.
