Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 779 - HC - Income TaxDeduction under Section 37(1) - expenditure incurred by the respondent/assessee towards Corporate Social Responsibility - HELD THAT:- The conditions for allowing deduction under Section 37 of the Act are broadly the following: (a) That the expenditure is not in the nature of capital expenditure. (b) That the expenditure is laid out or expended wholly and exclusively for the purposes of the business or profession. (c) That the deduction qua the expenditure incurred is not of the nature as specified under Sections 30 to 36 of the Act. Insofar as the third criterion is concerned, there is no dispute, that the expenditure claimed does not fall under any of the sections referred to in 37(1) of the Act i.e., Sections 30 to 36. As far as the other aspects are concerned, as noted by the Tribunal, in the past, CSR expenses had been allowed as deductible expenditure under Section 37(1) of the Act. Therefore, the only aspect, which appears to have been agitated before the Tribunal, was that Explanation 2 appended to Section 37(1) of the Act was retrospective in nature. This Explanation was inserted, as noted above, by Finance Act, 2014 with effect from 01.04.2015. That the Explanation appended to Section 37(1) of the Act is prospective has been held by this Court in order dated 29.11.2022 passed in a bunch of appeals, the lead matter [2022 (12) TMI 759 - DELHI HIGH COURT] - No substantial question of law arises for consideration.
|