Publicity and business promotion are two aspects in any kind of business which are outside the bounds of the AO sans any genuineness issue.
The High Court of Madras in (2021) 18ITR- OL 700 in so stating that it is not for the AO to decide what would be good/best for the company in promoting its business allowed a claim for deduction of expenditure incurred by MRF in maintaining a pace foundation to skill pace bowlers. MRF claimed that their company is associated with cricket dearly by sponsoring game of cricket and that by incurring expenditure on training pace bowlers the company gains popularity/publicity and that helps in promoting its sales all across the globe.
CSR expenditure is ordinarily deemed as non business but to the extent and ratio it pushes in the company popularity/publicity and promoting sales
/business of the company may be claimable as deductible business expenditure citing this case decision.
The High Court admitted the arguments that these kind of foundation expenditure are comparable to any other form of conventional advertisement mode such as hoardings and publicity material, sponsorship etc.