CSR Expenses Eligible for Deduction u/s 80G of the Income Tax Act: ITAT restores Matter to CIT ( Appeals )

The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that Corporate Social Responsibility (CSR) expenses are eligible for deduction under Section 80G of the Income Tax Act, directing the matter back to the Commissioner of Income Tax (Appeals) for re-evaluation.

 ABIS Export India Pvt. Ltd., involved in poultry and feed products, faced scrutiny over its CSR expenditure claim during assessment proceedings for A.Y. 2020-21. Initially disallowed by the Assessing Officer citing Section 37(1)'s Explanation-2, the claim was also rejected by the CIT (Appeals). 

The ITAT, comprising Ravish Sood and Arun Khodpia, noted procedural errors in considering the company's submissions and judicial precedents supporting CSR deduction under Section 80G. Consequently, the ITAT instructed the CIT (Appeals) to review the appeal considering the company's submissions and legal arguments.