In ITA No. 271/DEL/2019, the Steel Authority of India Ltd. (SAIL) contested disallowed deductions for the assessment year 2014-15, challenging the decisions made by the tax authorities regarding Corporate Social Responsibility (CSR) expenses and other financial treatments.
The case originated from the disallowance of CSR expenses deemed not wholly and exclusively spent for the purposes of business by the Assessing Officer. The appeal also covered disputes over the computation methods for disallowed deductions under Section 14A of the Income Tax Act.
The tribunal, in a detailed analysis, referred to precedents and statutory provisions, ultimately allowing the CSR expenses as a deduction and directing a consistent methodology for the computation of disallowances under Section 14A, aligning with previous assessment years.
The decision sets a significant precedent for how CSR expenditures are treated under Indian tax law, particularly regarding the allowable nature of such expenses incurred by corporations mandated by the Companies Act 2013. The ruling also emphasizes the need for consistency in applying tax laws across different assessment years.
ITA 271/DEL/2019: Steel Authority of India Ltd. Wins CSR Expenses Appeal
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform