Is it permissible to give charity from money taken from another person with the intention that its rewards go to the person on whose behalf the charity is given, in order to atone for the sin of taking the money?

It is Haram (forbidden) by consensus for the aggrieved to take from the wealth of one who wronged him more than what is rightfully his due, because of the Almighty's saying: "Indeed, Allah does not like the treacherous," and "do not transgress. Indeed, Allah does not like transgressors." He is obligated to repent and return the right to its rightful owners. As for taking the exact amount of one's right without transgression, there is a difference of opinion among jurists:

Hanafi school: It is permissible to take the exact same type of right.

Maliki school: Their opinions varied between prohibition, disapproval (karaha), permissibility, and recommendation (istihbab).

Shafi'i school: It is permissible to take the same type or a different type, provided that the judge is not aware, there is an inability to produce evidence, and one does not sell it to himself.

Hanbali school: It is forbidden to take one's right without the ruler's intervention.

Those who permit it have cited the Almighty's saying: "and they defended themselves after they were wronged," and prophetic hadiths. Imam Shafi'i and others hold that the hadith "and do not betray one who betrays you" is weak and does not constitute proof against those who used it as evidence, and that one who takes his right is not a betrayer. One who takes his right from an oppressive and uncooperative person must be precise and not exceed his right.