The Bombay High Court has lifted the Interim Order on Maharashtra Public Trusts Contribution

The ITAT ruled on a case involving Gujarat State Financial Services Ltd. regarding a ₹3.57 crore CSR donation to the Mukhyamantri Shree Swachchta Nidhi Gujarat. Initially, the assessee claimed a deduction under Section 80G, which the authorities disallowed, stating CSR donations were not eligible. However, the Tribunal found the donation qualifies under Section 80G and allowed the deduction.

The ITAT decided that a charitable society registered under Section 12A can still get tax exemption, even if it has a surplus from operations. The society, which runs eye hospitals, reported no income for 2017-18. The AO saw a surplus of 31.29% and classified it as taxable. However, the Tribunal concluded that the main activity was eye care, qualifying it for exemption, since it met the 85% application requirement.

The assessee, registered under Section 12A, applied for 80G approval under Section 80G of the Income-tax Act. The trust received school bus, tuition, and exam fees, but the Commissioner rejected the application, stating the receipts were not valid donations.