Tax tribunal rulings open doors to more firms claiming CSR deductions

Orders expected to settle matter but chances of the authorities questioning such deductions not ruled out, say tax experts

Recent rulings by tax dispute tribunals may help more companies to claim deductions for corporate social responsibility (CSR) spending.

Income Tax Appellate Tribunals in Mumbai and Delhi allowed companies to claim a deduction under section 80G for their CSR activities. The section allows deductions for contributions made to charitable institutions. Such claims were questioned in the past over the fact that CSR spends are not voluntary but done to fulfil a statutory obligation. Tribunal rulings, including one in Mumbai, on May 27 allowed claims.

“The amendment brought about by Finance Act, 2015 to section 80G of the Act which