McKinsey Global Capabilities & Services Pvt. Ltd. vs CIT(A)/NFAC, Delhi

Parties Involved

Facts Summary

The assessee, McKinsey Global Capabilities & Services Pvt. Ltd., appealed against the order of the CIT(A)/NFAC, Delhi, which disallowed a section 80G deduction amounting to Rs. 20,00,000/- on the grounds that it represented corporate social responsibility (CSR) expenditure under the provisions of the Companies Act. The assessee claimed that the donations made as part of CSR activities should be allowed as a deduction under section 80G of the Income Tax Act, 1961. The case revolved around whether CSR expenditures, which are disallowed as business expenditure under section 37(1) of the Act, can still be claimed as a deduction under section 80G.…

Legal Issues

• 1. Whether donations made as part of CSR expenditure are allowable 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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