9911796707
|
Home
Issues:
1. Interpretation of section 263 of the Income-tax Act, 1961 regarding the power of the Commissioner of Income-tax to direct the Assessing Officer not to allow a deduction under section 35CCA. 2. Validity of deduction claimed under section 35CCA based on a donation made to a society for rural development. 3. Impact of subsequent withdrawal of approval granted to the society on the deduction claimed by the assessee. Analysis: 1. The Tribunal referred a question regarding the Commissioner of Income-tax's power under section 263 of the Income-tax Act, 1961, to disallow a deduction under section 35CCA. The Commissioner had directed the Assessing Officer to disallow a deduction claimed by the assessee based on a donation made to a society. The Tribunal, after hearing both parties, allowed the appeal of the assessee, leading to a challenge by the Revenue. The Revenue argued that the donation was not genuine and the society was merely acting as an agency for issuing certificates under section 35CCA. However, the Tribunal found no evidence to support the Revenue's claims and upheld its decision, stating that the claim of deduction cannot be withdrawn based on subsequent events. 2. The assessee had claimed a deduction under section 35CCA for a donation made to a society for rural development. The Commissioner of Income-tax issued a show-cause notice for revision of the assessment order, directing the disallowance of the deduction. The Tribunal, after considering the facts, found that the society had valid approval for the deduction at the time of the donation. Despite the subsequent withdrawal of approval with retrospective effect, the Tribunal held that the assessee's claim could not be denied based on the later events. The Tribunal's decision favored the assessee, emphasizing the importance of the approval status of the society at the time of the donation. 3. The withdrawal of approval granted to the society for the deduction under section 35CCA raised a critical issue in the case. The Tribunal noted that the approval had been withdrawn with retrospective effect after the donation was made by the assessee. However, the Tribunal emphasized that the assessee should not suffer due to the Department's mistake in approving the society. The Tribunal concluded that the claim of deduction could not be invalidated based on subsequent events, especially when there was no evidence to support the claim that the donation was bogus. Ultimately, the Tribunal found no fault in its decision and ruled in favor of the assessee against the Revenue's contentions.
|
