Conditions For Donees U/s 80G Satisfied: ITAT Allows Deduction of CSR Donations [Read Order]
The Tribunal upheld the CIT(A)’s decision to allow the deduction of CSR donations under Section 80G, confirming that the conditions for donees were satisfied and dismissing the revenue’s appeal.
![Conditions For Donees U/s 80G Satisfied: ITAT Allows Deduction of CSR Donations [Read Order]](https://images.taxscan.in/h-upload/2025/07/12/2062969-csr-donations-taxscan.webp "Conditions For Donees U/s 80G Satisfied: ITAT Allows Deduction of CSR Donations [Read Order]")
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed the revenue’s appeal and upheld the Commissioner of Income Tax (Appeals) [CIT(A)]’s order to delete the disallowance of a deduction claimed for CSR donations under Section 80G of the Income Tax Act, 1961. Hinduja Global Solutions Ltd. (assessee), a company engaged in providing information technology...
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed the revenue’s appeal and upheld the Commissioner of Income Tax (Appeals) [CIT(A)]’s order to delete the disallowance of a deduction claimed for CSR donations under Section 80G of the Income Tax Act, 1961.
Hinduja Global Solutions Ltd. (assessee), a company engaged in providing information technology and information technology-enabled services, faced scrutiny during the assessment proceedings for the Assessment Year (AY) 2020-21.
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The Assessing Officer (AO) observed that the assessee claimed a deduction of Rs. 2,17,84,962/- under Section 80G for donations made towards Corporate Social Responsibility (CSR) activities. The AO disallowed the deduction, citing Explanation 2 to Section 37(1) of the Act, which disallows CSR expenses as business expenditure.
Aggrieved by the AO’s order, the assessee appealed to the CIT(A). The assessee contended that the claimed deduction was not for CSR expenditure under Section 37(1) but was specifically for donations qualifying under Section 80G of the Act.
The CIT(A), after reviewing the submissions and relying on various decisions of coordinate benches, deleted the disallowance. The CIT(A) allowed the deduction under section 80G of the Act.
Aggrieved by the CIT(A)’s order, the revenue filed an appeal before the ITAT. The Counsel for the Revenue supported the AO’s findings and argued that the CIT(A) erred in looking at Explanation 2 to Section 37(1) of the Act.
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The two-member bench, comprising Shri Saktijit Dey (Vice President) and ShriNarendra Kumar Billaiya (Accountant Member) observed that the assessee had explicitly claimed the donations under Section 80G and not as CSR expenses under Section 37(1) of the Income tax Act.
The tribunal relied on the precedent set by the coordinate bench in Motilal Oswal Securities Ltd. which followed decisions in Allegis Services India Pvt. Ltd. (ITA No. 1693/Beng./2019) and JMS Mining Pvt. Ltd.
The tribunal observed that these decisions consistently held that if the conditions for donees under Section 80G are satisfied, the deduction for CSR contributions or donations must be allowed.
The tribunal found no infirmity in the CIT(A)’s findings, which were supported by judicial precedents. The tribunal refused to interfere with the CIT(A)’s order. The appeal of the Revenue was dismissed.
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