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TMI Blog2018 (5) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... none of the receipts mention that the amount received is donation. However, for proper adjudication of this issue we deem it appropriate to restore the issue back to Assessing Officer for verification. If the assessee has made donation to a political party as defined u/s. 80GGC, the assessee is eligible to claim deduction under the provisions of aforesaid section. AO shall decide this issue after examining the documents on record Allowing expenditures without ascertaining the genuineness of expenditures - Held that:- The onus is on the assessee to prove that the expenditure has been incurred “wholly and exclusively” for the purpose of business. The assessee has failed to discharge this onus. Similar is the position in respect of payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating the fact that the onus to prove lies on the person who claims the expenses. 3) The appellant craves leave to add, alter or amend any or all the grounds of appeal. 3. Dr. Vivek Agrawal representing the Department submitted that the assessee in its return of income has claimed deduction of ₹ 10,50,000/- u/s. 80GGC of the Income Tax Act, 1961 (hereinafter referred to as the Act ). During the course of scrutiny assessment proceedings, it transpired that the assessee has made payment of ₹ 10,50,000/- on various dates to newsletter/local newspaper Rashtrawadi for publication of advertisement in the new letter/news paper. The assessee has claimed deduction u/s. 80GGC on the ground that the aforesaid newsletter/news ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces at pages 42 to 53 of the paper book. The ld. AR contended that the payments were made to Rashtrawadi newsletter run by a political party registered u/s. 29 of the Representative People Act, 1951. Thus, the assessee is eligible for claiming deduction u/s. 80GGC of the Act. 4.1 In respect of ground No. 2 raised by Revenue, the ld. AR submitted that the assessee has made payment of ₹ 1 crore towards legal consultancy charges and ₹ 1.1 crore for Business Auxiliary Service. The ld. AR referred to bill amounting to ₹ 1 crore at page 58 of the paper book raised for providing legal consultations and opinions and the invoice raised by Sham Chopra at page 59 of the paper book for providing Business Auxiliary Service. The ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim of deduction u/s. 80GGC on the ground that the payment has been made to a newspaper for advertisement and not to a political party or an electoral trust as envisaged u/s. 80GGC of the Act. An explanation to section 80GGC defines political party as under : For the purposes of sections 80GGB and 80GGC, political party means a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951). In the present case, the payment has been made to a newspaper being run by a political party for insertion of some advertisements in the said newsletter/newspaper. The assessee has made payment of ₹ 10,50,000/- to the newsletter/newspaper during April, 2010 to March, 2011. The Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Chopra for Business Auxiliary Service. However, the assessee has failed to substantiate that legal opinions/consultations were in connection with business. The assessee has not furnished any cogent evidence whatsoever, either before the authorities below or before us to show the nature of Business Auxiliary Service allegedly received by assessee from Shri Sham Chopra. The Commissioner of Income Tax (Appeals) has allowed the expenditure merely on the ground that the payments have been made against receipts from concerned parties and TDS has been deducted on such payments. One of the vital condition for an expenditure to be allowable u/s. 37(1) of the Act is, that the expenditure must have been laid out or expended wholly and exclusivel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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