2021 (8) TMI 1082

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..... ssessee/appellant as deduction under section 80GGA of the Income Tax Act, 1961 [hereinafter referred to as 'the Act']. The ld. Counsel narrating facts of the case submitted that, the assessee had made donation of Rs. 1,25,000/- to Navjeevan Charitable Trust by way of cheque and had claimed deduction under section 80GGA of the Act in return of income for A.Y. 2014-15. The Assessing Officer (AO) re-opened the assessment for AY 2014-15 on the ground that deduction claimed by the assessee under section 80GGA of the Act in respect of donation made by the assessee to Navjeevan Charitable Trust is not allowable. The AO in assessment order passed under section 143(3) read with section 147 of the Act disallowed assessee's claim of deduction under se .....

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..... ses, the AO had disallowed donation made by the assessee to Navjeevan Charitable Trust. The Tribunal deleted the disallowance as there was no evidence to show that the assessee has received back the donation amount from the Trust. The addition was made merely on the basis of surmises and conjectures. 4. On the other hand, Shri Sanjay J. Sethi representing the Department vehemently defended the impugned order and prayed for dismissing the appeal of assessee. The ld. Departmental Representative (DR) submitted that search and survey operation was carried out by the Investigation Wing on Navjeevan Charitable Trust. During search operation, it was found that the Trust had accepted donations and returned the amount to donors in cash after chargi .....

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..... ition of Rs. 500,000 being given to charitable trust as donation on the ground that on the search of the said charitable trust it has been found that it has been incurring only bogus expenditure. This led to the presumption of the assessing officer that the said sum of Rs. 500,000 has actually come to the assessee clandestinely. In my considered opinion it is undisputed that assessee has submitted the receipt for the donation. The same has been paid by banking channel. There is no evidence on record that the same amount has been received back by the assessee from the said charitable trust. In these circumstances in my considered opinion this addition is solely based on surmise and conjecture and not sustainable in law. Accordingly I set asi .....

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