Genesys International Corporation Limited Vs ACIT (ITAT Mumbai)
The ITAT Mumbai held that CSR expenditure, though disallowed as business expense under Section 37, can still qualify for deduction under Section 80G if it satisfies the conditions of that section.
In this case, the assessee incurred ₹50 lakh CSR expenditure and claimed deduction of ₹22.60 lakh under Section 80G for donation made to an approved trust. The AO disallowed the claim citing prohibition under Section 37.
The Tribunal clarified:
- Section 37 disallowance of CSR expenses does not automatically bar deduction under Section 80G.
- Both provisions operate independently.
- If donation is made to an approved institution under Section 80G, deduction is allowable.
It was also noted that:
- Assessee had not claimed CSR as business expenditure.
- Done institution was undisputedly eligible under Section 80G.
- No violation of conditions under Section 80G was alleged by Revenue.
CSR spend may be disallowed under Section 37, but can still yield tax benefit under Section 80G if structured as eligible donation.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The present appeal arises out of order dated 28.11.2025 of National Faceless Appeal Centre (‘NFAC’ for short), Delhi pertaining to the assessment year (A.Y. for short) 2020- 21.
