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TMI Blog2019 (9) TMI 1541X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the above claim of the assessee. The AO has not brought on record that donation given by the assessee was subsequently returned back in cash, except a mere bald statement in the assessment order that survey action conducted on some of the donors have conclusively proved that the Trust indeed returned the donation in cash . The AO has not found any fault in the documents filed by the assessee during the course of assessment proceedings. In CIT v. A And A Bakery P. Ltd.[ 2007 (3) TMI 235 - DELHI HIGH COURT] it is held that it is for the taxpayer tp prove the expenditure claimed by him, But the burden will shift, where the assessee had produced prima facie evidence as payment by cheque, so that no further proof may be expected. Disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iming the deduction under section 35AC of the Act; iii. the Appellant had procured all the relevant details and documents before giving donation to the trust. 1.3. It is submitted that in the facts and circumstances of the case, and in law, no such disallowance was called for. 3. Briefly stated, the facts of the case are that the assessee filed his return of income for the assessment year (AY) 2009-10 on 31.07.2009 declaring income of ₹ 2,07,84,190/-. The assessee is engaged in management consultancy services. During the year, the assessee has claimed deduction of ₹ 3,00,000/- paid to Navjeevan Charitable Trust u/s 35AC of the Act. During the course of assessment proceedings, the AO observed that a search action u/s 132 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 35AC is applicable for financial year 2012-13 on donation to the said Trust. However, the AO was not convinced with the above explanation of the assessee for the reason that further survey actions conducted by the Investigation Wing of the Department on some of the donors conclusively proved that Navjeevan Charitable Trust indeed returned the donation in cash. Further, the AO noted that the assessee was unable to produce the party to whom donation was made. Notices u/s 133(6) and 131 issued by the Investigation Wing of the Department prove the modus operandi and lack of genuineness of the transactions. Thus the AO made a disallowance of ₹ 3,00,000/- to the income declared by the assessee. 4. Aggrieved by the order of the AO, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2009. Further, it is stated by him that the trustee who had approached the assessee for donation to the said Trust, Mr. Ashok Bagadia had expired on 06.11.2014 and apart from Mr. Bagadia, the assessee was not knowing any other person of the Trust, as such he was not able to produce any other authorized person from the Trust before the AO. Further, it is stated by him that the payment of donation was through account payee cheque and there was no evidence brought on record by the AO that donation given by the assessee was subsequently returned back in cash. It is further argued that though the survey proceedings conducted in the hands of certain donors revealed that the donations were bogus in nature, but no such finding had been given in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01.2009, where the Central Government had notified the Trust for a period of 3 years beginning from financial year 2008 - 09, (ii) Copy of letter from Ministry of Home Affairs granting registration to the Trust under the Foreign Contribution (Regulation) Act, 1976, (iii) P.A.N. Card issued to the Trust (iv) Presentation given by the Trust to the Appellant for procuring donation for its activities (v) Receipt along with Form No. 58 A issued by the Trust for the donation given to it (vi) Copy of Bank Statement of the Appellant for the period 01.04.2008 to 31.03.2009. After the assessee has adduced evidence to establish prima facie the payment of donation of ₹ 3,00,000/- to Navjeevan Charitable Trust, the onus shifted to the AO. However ..... X X X X Extracts X X X X X X X X Extracts X X X X
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