Assessee cannot be denied the benefit of a claim under Chapter VI A, which is considered for computing ‘Total Taxable Income”

The Income Tax Appellate Tribunal has ruled that an assessee cannot be denied the benefit of deductions under Chapter VI A. This is because these deductions are considered when calculating the 'Total Taxable Income'. The case involved an appeal where the assessee's claim for a deduction under Section 80G for donations made as part of Corporate Social Responsibility (CSR) expenditure was rejected by the Assessing Officer.

IN THE INCOME TAX APPELLATE TRIBUNAL
“A” BENCH : BANGALORE

BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER
AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER

ITA No.1565/Bang/2019
Assessment year: 2016-17

M/s. FNF India Private Ltd.,
6th, 7th & 8th Floor, Umiya,
Business Bay, Tower 2,
Cessna Business Park,
Kadubeesanahalli,
Bengaluru – 560 103.
PAN: AAECP 1100B
APPELLANT 

Vs.

The Assistant Commissioner
of Income Tax,
Circle 3(1)(1),
Bengaluru.
RESPONDENT

Appellant by : Shri K R Vasudevan, Advocate
Respondent by : Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru.

Date of hearing : 05.01.2021
Date of Pronouncement : 05.01.2021

O R D E R

Per Chandra Poojari, Accountant Member

This appeal by the assessee is directed against the order of CIT(Appeals)-3, Bengaluru dated 21.05.2019 passed u/s. 143(3) of the Income-tax Act, 1961 [the Act].

2. The first ground of appeal is with regard to the rejection of claim ofdeduction of Rs.11,87,500 made to charitable institutions u/s. 80G of theAct holding that deduction u/s. 80G is not available to the assessee since donations are made as part of the Corporate Social Responsibility (CSR).

3. The brief facts with regard to the issue of deduction u/s. 80G of theAct are that during the course of assessment proceedings the AO observedthat the assessee had incurred certain expenses on account of CSR as per provisions of Companies Act. 2013. On this payment deduction u/s. 80G tothe extent of Rs. 11,87,500 was claimed. The AO referred to explanatory circular to Finance (No.2) Act, 2014 dt 21.01.2015 and Section l98 of the Companies Act, 2013 and held that deduction under Section 80G of the Act was not available if the donation was part of the CSR expenditure.

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