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2021 (1) TMI 205 - AT - Income TaxDeduction made to charitable institutions u/s. 80G - Denial of deduction u/s. 80G as not available to the assessee since donations are made as part of the Corporate Social Responsibility (CSR) - HELD THAT:- As decided in ALLEGIS SERVICES (INDIA) PVT. LTD [2020 (5) TMI 378 - ITAT BANGALORE] submitted that all payments forming part of CSR does not form part of profit and loss account for computing Income under the head, “Income from Business and Profession” - some payments forming part of CSR were claimed as deduction under section 80G of the Act, for computing “Total taxable income”, which has been disallowed by authorities below. In our view, assessee cannot be denied the benefit of claim under Chapter VI A, which is considered for computing ‘Total Taxable Income”. If assessee is denied this benefit, merely because such payment forms part of CSR, would lead to double disallowance, which is not the intention of Legislature. Authorities below have erred in denying claim of assessee under section 80G of the Act. We also note that authorities below have not verified nature of payments qualifying exemption under section 80G of the Act and quantum of eligibility as per section 80G(1) - we are remitting the issue back to Ld.AO for verifying conditions necessary to claim deduction under section 80G of the Act. Assessee is directed to file all requisite details in order to substantiate its claim before Ld.AO. Ld.AO is then directed to grant deduction to the extent of eligibility. Considering new claim of the assessee without any revised return by FAA - Non-grant of deduction for gratuity - assessee submitted before the CIT(Appeals) that it had created a provision for gratuity - HELD THAT:- As rightly pointed out by the ld. AR, the first appellate authority has powers to entertain additional claims, even if the same was not made in the return of income. This was fortified by the judgment of the Hon’ble Bombay High Court in of Pruthvi Brokers & Shareholders [2012 (7) TMI 158 - BOMBAY HIGH COURT] - Being so, in our opinion, the assessee in principle is entitled to claim deduction of gratuity paid before the appellate authorities. Accordingly, we remit this issue to the file of AO to quantify the amount of deduction towards gratuity and decide accordingly.
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