Corporate Social Responsibility (CSR) Expenditure – Deduction under Chapter VI-A – Allowability of CSR expenditure under Section 80G despite disallowance under Section 37(1) – Voluntariness of contribution not a precondition – No reciprocal benefit to donor – Deduction permissible subject to fulfillment of conditions of Section 80G.

35. [2025] 122 ITR(T) 194 (Delhi - Trib.)

Cheil India Pvt. Ltd. vs. Deputy Commissioner of Income-tax

ITA NO.: 29/DEL/2024

A.Y.: 2020-21 DATE: 28.10.2024

Sections 80G & 37(1)

Corporate Social Responsibility (CSR) Expenditure – Deduction under Chapter VI-A – Allowability of CSR expenditure under Section 80G despite disallowance under Section 37(1) – Voluntariness of contribution not a precondition – No reciprocal benefit to donor – Deduction permissible subject to fulfillment of conditions of Section 80G.

FACTS

The assessee, Cheil India Pvt. Ltd., a company governed by the provisions of the Companies Act, 2013, incurred Corporate Social Responsibility (CSR) expenditure during the financial year relevant to AY 2020-21 and claimed deduction of ₹2,57,66,663 under Section 80G of the Income-tax Act, 1961. The donations were made to institutions duly registered and notified under section 80G.

The Assessing Officer, while completing the assessment under section 143(3) read with section 144B, disallowed the entire claim under sect