Income tax

CSR expenses, Contribution to the CM Relief Fund eligible for Income Tax Exemption: ITAT

CSR expenses - Contribution - CM's Relief Fund - Income tax exemption - ITAT - taxscan

The Delhi Bench of the Income Tax Appeals Tribunal (ITAT), consisting of GS Pannu, Chairman and Mrs. Astha Chandra, Judicial Member, ruled that the CSR expenses incurred by the company and the contribution to the CM relief funds are eligible for exemption under the provisions of the Income Tax Act 1961.

The assessee, M/s Security Printing & Minting Corporation of India Ltd, challenged the denial of CSR expenditure of Rs. 3,96,00,919/- and denial of deduction under Section 80G of Rs. 2, 50 crores to the CM relief fund on overall CSR expenses. AA returned contested denial treating CSR expenditure as capital in nature

The assessee argued that no lasting benefit accrued or resulted for the assessed company.

Recalling its past orders and relying on a series of judgments, the Tribunal held that “the identical question was considered by the Tribunal in its order in numbers ITA 3685 and 3686/Del/2017 of 16.09.2021 for AY 2012 -13 and 2013 -14 in which the Court recorded the conclusion that the disputed expenses cannot be considered capital expenses and that they are not in the nature of personal expenses or any violation of the law. »

“Respectfully following and concurring with the Court’s (supra) order, we remove the disputed denial of CSR expenses. With respect to the donation to CM’s relief fund, the same applies, per elsewhere, deductible under section 80G(2)(a)(iiihf),” the court said.

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Security Printing & MintingCorporation of India Ltd v Addl. ICT

Counsel for the Appellant: Shri YK Magan, Shri Yogesh Jain

Counsel for the Respondent: Shri Umesh Takyar