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2022 (6) TMI 263 - AT - Income TaxCIT-A power to entertain the claim of deduction otherwise then by revised returned - deduction u/s 80G of the Act in respect of donation - disallowance of deduction claimed in respect of donation - Claim before the Ld. CIT(A) rejected on the ground that he does not have power to entertain fresh claim - HELD THAT - We find that identical issue has been decided by the Hon ble Bombay High Court in the case of Pruthvi Brokers Shareholders 2012 (7) TMI 158 - BOMBAY HIGH COURT made it clear that Tribunal can entertain the claim of deduction otherwise then by revised returned. Respectfully following the above decision of the Hon ble High Court, we admit the claim of the assessee for deduction u/s 80GGA of the Act subject to verification by the Assessing Officer. Accordingly, we restore the issue back to the file of the Ld. Assessing Officer for examining of the documents in support of claim u/s 80GGA and if the claim is found in accordance with law same may be allowed. The grounds of the appeal of the assessee are accordingly allowed for statistical purposes.
Issues:
1. Disallowance of deduction claimed for donation made by the Appellant. 2. Rejection of fresh claim for deduction of donations under Section 80GGA of the Income-tax Act, 1961. Issue 1: Disallowance of deduction claimed for donation made by the Appellant: The Assessee claimed a deduction of INR 9,00,000 under Section 80G of the Income Tax Act, 1961. However, during scrutiny, the Assessing Officer restricted the deduction to 10% of the gross total income, citing the donation to M/s Sahara Health and Education Society. The Assessee requested to allow the deduction under Section 80GGA instead, but the claim was rejected. The Ld. CIT(A) also denied the claim, citing the Supreme Court's decision in Goetze (India) Ltd. v. CIT. The Ld. CIT(A) held that without filing a revised return of income, the Assessing Officer cannot entertain a claim for deduction. The Assessee referenced the decision of the Bombay High Court in CIT v. Pruthvi Brokers & Shareholders, asserting that appellate authorities can admit fresh claims of deduction. The Tribunal, following the Bombay High Court's decision, admitted the Assessee's claim for deduction under Section 80GGA, subject to verification by the Assessing Officer. Issue 2: Rejection of fresh claim for deduction of donations under Section 80GGA of the Income-tax Act, 1961: The Assessee sought to revise the claim for deduction under Section 80GGA of the Act, which allows 100% deduction. However, both the Assessing Officer and the Ld. CIT(A) rejected this claim, citing the inability to entertain fresh claims without a revised return of income. The Assessee argued that the Tribunal has the power to admit new claims, referencing the Supreme Court's decision in Goetze (India) Ltd. v. CIT. The Tribunal agreed with the Assessee, following the precedent set by the Bombay High Court, and allowed the claim for deduction under Section 80GGA, directing the Assessing Officer to verify the claim's compliance with the law. Consequently, the appeal filed by the Assessee was allowed for statistical purposes. This judgment highlights the importance of procedural compliance in claiming deductions under the Income Tax Act and the authority of appellate bodies to admit fresh claims for deductions. The Assessee's claim for deduction under Section 80GGA was ultimately allowed by the Tribunal, emphasizing the significance of legal precedent and the proper interpretation of tax laws in resolving disputes related to deductions.
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