The Tribunal held that , the Explanatory Memorandum to the Finance (No. 2) Bill, 2014 states that for the purposes of section\u00a037(1)\u00a0of the\u00a0Income-tax Act, 1961\u00a0any expenditure incurred by an assessee on the activities relating to corporate social responsibility referred to in section\u00a0135\u00a0of the\u00a0Companies Act, 2013\u00a0shall not be deemed to have been incurred for the purpose of business and, hence, shall not be allowed as deduction under section\u00a037\u00a0. However, the corporate social responsibility expenditure which is of the nature described in sections\u00a030\u00a0to\u00a036\u00a0of the Act shall be allowed as deduction under those sections subject to fulfilment of conditions, if any, specified therein. All payments forming part of corporate social responsibility would not form part of the profit and loss account. The assessee could not be denied the benefit of claim under Chapter VI-A, which was considered for computing \u201ctotal taxable income\u201d. If the assessee was denied this benefit, it would lead to double disallowance. The authorities had not verified the nature of payments qualifying for exemption under section\u00a080G\u00a0of the Act and the quantum of eligibility in terms of section\u00a080G(1)\u00a0of the Act.\u00a0 The issue was remitted to the file of the Assessing Officer.( AY.2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.37(1) : Business expenditure \u2014Corporate social responsibility expenses \u2014Matter remanded [ S.80G ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13762","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3zY","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=13762"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13762\/revisions"}],"predecessor-version":[{"id":13763,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13762\/revisions\/13763"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=13762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=13762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=13762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}