9911796707
TMI Blog2020 (4) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... s consolidated order. 2. The assessee, has more or less raised common grounds of appeal for both AY's. Therefore, for the sake of brevity grounds of appeal filed for AY 2013-14 are reproduced as under:- 1. Whether on facts and circumstances of the case. The Ld.CIT(A) was correct in confirming the disallowances of Rs. 83,389/- paid as society charges while determining the annual value of the flat. 2. Whether on the facts and circumstances of the case. The Ld.CIT(A) was correct in confirming the addition of Rs. 13,605/- paid as donation to local Ganesh Mandals etc. 3. The brief facts of the case are that the assesee is a partnership firm, which is engaged in the business of manufacturer of goods, filed its return of income for AY 2013-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations has been paid to local organizations for Genasha festival. Hence, the same cannot be allowed as deductions. When the issue has been discussed with the Ld. AR for the assessee, he has agreed for disallowances, but requested for deductions u/s 80G of the I.T.Act, 1961. Since, the assesee has not claimed deductions u/s 80G by filing revised return, the Ld. AO has not consider the claim of the assesee for deductions towards donations u/s 80G of the I.T.Act, 1961. 4. Aggrieved by the assessment order, the assessee preferred an appeal before the Ld.CIT(A), before the Ld.CIT(A), the assesee has reiterated its arguments made before the Ld. AO , along with certain judicial precedents, in respect of disallowances of society charges out of gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same cannot be allowed as deductions. He, further observed that assesse could have claimed deduction u/s 80G, if the local mandals had the requisite approvals as required under the Act. In absence of the same, the Ld. AO is correct in disallowances of donations of Rs. 13,605/-. Aggrieved by the Ld.CIT(A), the assessee is in appeal before us. 7. The first issue that came up for our consideration from ground No. 1 of assesee appeal is disallowances of society maintenance charges claimed by the assesee. The facts with regard to the impugned disputes are that the assesee has let out a property at Maple Society, Powai and the income of which is offered to tax under the head income from house property. The assessee has debited society charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the authorities below. As per the provision of section 23 of the Act, the annual value of the property shall be actual rent received less, the tax levied by any local authority, in respect of the property so let out. In computing income from house property, the assessee can claim deductions for property taxes levied by the local authority, if such taxes has been actually paid by him during the relevant financial year. In addition, the statutory deductions @ 30% as provided u/s 24(a) and other deductions like interest is permissible, as per the provision of the Act. In light of above legal position, if you consider the facts of the present case, we find that the assessee has claimed deductions towards society charges paid to Maple Societ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount out of rental income. 11. The next issue that came up for our consideration from ground No.2 of assesse appeal is disallowances of donations of Rs. 13,605/-. The assessee has claimed deductions for donations paid to local mandals such as Ganesha mandals etc,. The assesee claims that these are compulsory donations one has to paid to local mandal in order to run business smoothly. We find that it is a general practice prevailing in business that in some occasions, the business people needs to pay certain donations to local peoples for celebrations of various festivals and functions and those donations are compulsory in nature in order to smoothly conduct the business of the assessee. Therefore, we are of the considered view that donati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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