L&T Finance Limited vs. DCIT, Circle-5(1), Kolkata

Parties Involved

Facts Summary

During the assessment years 2018-19 and 2019-20, L&T Finance Limited incurred Corporate Social Responsibility (CSR) expenses amounting to Rs.4,53,33,770/-. Out of this total, Rs.1,48,19,675/- was claimed as a deduction under section 80G of the Income Tax Act. The Assessing Officer disallowed this deduction, holding that CSR expenditure is not allowable under section 37 of the Act. The CIT(A) confirmed this addition. The sole issue before the tribunal was whether the amount paid by the assessee to a charitable institution under its CSR mandate is eligible for deduction under section 80G of the Act.…

Legal Issues

• 1. Whether the amount paid by the assessee to a charitable institution under its CSR mandate is eligible for deduction under section 80G of the Income Tax Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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