2024 (5) TMI 497 - AT - Income Tax

Denial of deduction claimed under Chapter VI-A i.e. Section 80G/80GGA read with Section 35AC - donations paid to the eligible institutions - as argued appellant right since AY 1993-94, was computed in the status of AOP and deduction u/s 80GGA r.w.s. 35 AC was granted year after year - HELD THAT - We find that admittedly the assessee has not claimed the benefit of Section 11 and 12 of the Act as it is reflecting the AO, CPC s intimation order issued u/s 143 (1) of the Act. If that be so, then we find that the assessee is entitled to deduction u/s VI-A/80G/80GGA r.w.s. 35 AC of the Act. We also note that the assessee has been granted relief as claimed for since 1993-94 and even also in the scrutiny assessment for Assessment Year 2013-14 which is also on record. In fact, such claim of the assessee has not been able to be controverted by DR by producing any evidence contrary to the same at the time of hearing of the instant appeal. As considered the order passed by the coordinate bench on the identical facts and circumstances of the case wherein the said assessee trust has been granted relief u/s 80GGA r.w.s. 35AC of the Act. Paper book filed before us contains the details of donations made by the assessee to Janki Bajaj Gram Vikas Sansthan along with other donations made by the assessee to the other trusts. Veracity of the donations made by the assessee on which the claim u/s 80GGA r.w.s. 35AC of the Act has been made, has not been done by the authorities below. We are disposing of this appeal with the direction upon the Ld. AO to verify the details of donations made by the assessee and grant relief to the assessee in the light of the observations made hereinabove.

Summary

Issues:
The judgment involves the denial of deduction claimed by the appellant under Chapter VI-A of the Income Tax Act, specifically u/s 80-G/80GGA read with Section 35AC, by the Assessing Officer (AO), which was upheld by the National Faceless Appeal Centre, Delhi.

Summary:

Issue 1: Denial of Deduction under Chapter VI-A of the Act
The appellant, a Public Charitable Trust, filed a return declaring total income as Nil. The denial of deduction claimed under Section 80GGA of the Act by the AO was challenged through an appeal. The appellant had not claimed benefits under Section 11 and 12 of the Act since Assessment Year 1993-94. The denial of deduction was based on the inconsistency between the information furnished in the return and the claim made. The AO's decision was affirmed by the CIT(A) based on the Auditor's report and the provisions of Section 143(1)(a)(ii) of the Act.

Issue 2: Justification for Claiming Deduction
The appellant contended that due to non-compliance with Section 11(5) and Section 13(1)(d) of the Act, it did not claim benefits under Section 11 and 12. The appellant argued for entitlement to deduction under Section 80G/80GGA for donations made to eligible institutions. It was emphasized that the appellant consistently claimed deductions under Section 80GGA since Assessment Year 1993-94. The appellant also cited a previous assessment year where similar deductions were allowed.

Issue 3: Judicial Consideration and Relief Granted
The Tribunal considered the arguments of both parties and reviewed relevant records. It noted that the appellant had not claimed benefits under Section 11 and 12 as per the AO's intimation. Consequently, the Tribunal found the appellant entitled to deduction under Section 80GGA. The Tribunal highlighted the lack of evidence presented by the Revenue to counter the appellant's claims. Reference was made to a previous case where similar relief was granted. The Tribunal directed the AO to verify the details of donations made by the appellant and grant relief accordingly.

In conclusion, the appellant's appeal was allowed for statistical purposes, with the Tribunal providing directions to the AO for further verification and grant of relief.

Order pronounced on 8th May, 2024.