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2019 (9) TMI 1541 - ITAT MUMBAIDeduction u/s.35AC on account of donation given by the appellant - During the course of search, one of the trustees accepted that all the expenses were bogus and the donations received in cheques were returned in cash to all the donors after deducting nominal commission - HELD THAT:- After the assessee has adduced evidence to establish prima facie the payment of donation to Navjeevan Charitable Trust, the onus shifted to the AO. However, the AO failed to conduct any inquiry before making disallowance 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. Disallowance prompted by mere suspicion in such cases was held unjustified. We delete the disallowance made by the AO. Facts being identical, our decision for the AY 2009-10 applies mutatis mutandis to AYs 2012-13 & 2014-15. - Decided in favour of assessee.
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