2022 (7) TMI 855 - AT - Income Tax

Deduction u/s 80B - deduction disallowed on the ground that the recipient M/s. Ashwini Rural Cancer Research and Relief Society did not enjoy the corresponding registration - HELD THAT - We note during the course of hearing that the instant issue is no more res integra as the Tribunal learned co-ordinate bench order in revenue s appeal 2019 (3) TMI 723 - ITAT PUNE as held trust is registered u/s.12A of the Act and also have obtained its exemption u/s.80G of the Act. In view of the aforesaid facts and circumstances, relief granted to the assessee by the Ld. CIT(Appeals) is sustained. Disallowing sec. 35(2AB) deduction - form No. 3CL dt. 21-5- 2015 was received subsequent to the last date for filing of the revised return - HELD THAT - Revenue s technical arguments fail to evoke are concurrence once it has come on record that the assessee had very well proceeded as per the prescribed authority DSIR s approval. And also that neither the Assessing Officer nor the CIT(A) have been able to find any fault therein. Faced with this situation and taking note of hon ble apex court in the case of Goetz India Ltd. 2006 (3) TMI 75 - SUPREME COURT and Pruthvi Brokers and Shareholders . 2012 (7) TMI 158 - BOMBAY HIGH COURT , we exercise our statutory second appellate jurisdiction to accept the assessee s impugned claim in principle and direct the learned Assessing Officer to carry out all necessary factual verification in consequential proceedings. We order accordingly. Adhoc disallowance of vehicle expenses thereby quoting personal use - HELD THAT - Assessee has already succeeded on this issue in A.Y. 2004-05 before the Tribunal - We adopt judicial consistency to hold that the learned lower authorities have erred in law and on facts in making the impugned disallowance in case of assessee company. Accepted accordingly.

Summary

Issues:
1. Disallowance of deduction u/s 80B for A.Y. 2012-13.
2. Disallowance of deduction u/s 35(2AB) for A.Y. 2013-14.
3. Amortization of lease charge disallowance.
4. Adhoc disallowance of vehicle expenses.

Issue 1: Disallowance of deduction u/s 80B for A.Y. 2012-13:
The appellant challenged the disallowance of deduction u/s 80B amounting to Rs. 50,00,000/- due to the recipient not having registration. The Tribunal referred to a previous order where a similar issue was adjudicated against the department, emphasizing that if an application for exemption is not entertained within 6 months, the trust is deemed to have been granted approval. The Trust in question had valid approvals under Sec. 12A and Sec. 80G, as confirmed in the assessment order. The Tribunal upheld the relief granted to the assessee by the CIT(A), dismissing the Revenue's appeal as no distinction of facts or law was pointed out in their favor.

Issue 2: Disallowance of deduction u/s 35(2AB) for A.Y. 2013-14:
The appellant sought to revive the disallowance of sec. 35(2AB) deduction claim of Rs. 1,99,33,256/- during assessment. The CIT(A) rejected the claim, stating that the appellant could have filed the claim in the original or revised return based on the approval received earlier. The Tribunal, after considering the prescribed authority's approval and lack of fault found by lower authorities, accepted the appellant's claim in principle, directing the AO to verify the facts. Additionally, the Tribunal allowed the appellant's claim regarding adhoc disallowance of vehicle expenses based on judicial consistency.

Issue 3: Amortization of lease charge disallowance:
The issue of amortization of lease charge disallowance of Rs. 4,717/- was not pressed during the hearing and was rejected accordingly.

Issue 4: Adhoc disallowance of vehicle expenses:
The appellant succeeded in a previous case regarding adhoc disallowance of vehicle expenses, and the Tribunal held that the lower authorities erred in making the disallowance in the current case. The claim was accepted based on judicial consistency.

In conclusion, the Tribunal allowed the appeal for A.Y. 2012-13 and partly allowed the appeal for A.Y. 2013-14, directing necessary actions by the Assessing Officer. The judgment addressed various issues related to deduction disallowances and highlighted the importance of compliance with registration requirements and timely filing of claims for deductions under the Income-tax Act, 1961.