Deduction u/s 80G of Income Tax Act Allowable on CSR Expenditure: ITAT [Read Order]

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) ruled that deductions under Section 80G of the Income Tax Act, 1961 are permissible for corporate social responsibility (CSR) expenditures. Alubound Dacs India Private Limited, engaged in manufacturing and trading, faced disallowance under Section 80G by the Assessing Officer, which was upheld by the CIT(A). \r

The company argued that CSR expenses should qualify for deductions, citing relevant legal precedents. The tribunal observed that the Finance Act, 2015 amendments to Section 80G suggest CSR expenditures align with allowable deductions. \r

Upholding the appeal, ITAT directed the AO to grant the deduction, contingent upon compliance with Section 80G criteria.