Advik Hi Tech Pvt. Ltd. vs. Dy. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Advik Hi Tech Pvt. Ltd., a company engaged in the manufacturing and sales of automotive components, filed its return of income for the Assessment Year 2021-22 on 07.03.2022, declaring a total income of Rs.68,66,62,760/- and book profit under MAT at Rs.70,23,06,208/-. The case was selected for scrutiny, and statutory notices were issued and responded to by the assessee. The Assessing Officer observed that the assessee incurred CSR expenses amounting to Rs.1,28,66,103/- and claimed a deduction of Rs.64,32,502/- under section 80G of the Income Tax Act, 1961. The assessee argued that the CSR expenditure could be claimed as a deduction under section 80G, while the Assessing Officer and Commissioner of Income Tax (Appeals) disallowed the deduction, holding that the CSR expenditure was mandatory and not voluntary, thus not eligible for deduction under section 80G.…

Legal Issues

• 1. Whether CSR expenditure can be claimed as a deduction under section 80G of the Income Tax Act, 1961?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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