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2016 (8) TMI 818 - AT - Income TaxDenial of deduction u/s 80G - assessee has claimed deduction on the ground that it had made payment as donation to South Indian Education Society (SIES) - AO has disallowed the claim of the assessee on the basis of report dated 22.12.2010 of the investigation wing of the department, which revealed that during the relevant period SIES used to issue bogus certificates u/s 80G - Held that:- Since SIES had disclosed the said modus operandi during investigation before the investigation wing, the AO during assessment proceeding, summoned SIES. In response thereof, SIES vide letter dated 23.10.2010 confirmed having received donation from the appellant/assessee. The Ld. Counsel for the assessee has contended that a general statement made by SIES before the investigating officer, is not sufficient to hold that the appellant/assessee has received back the amount paid to SIES as donation. In our considered view, there is force in the contention of the assessee. Since SIES has not specifically stated that the amount received from the assessee was returned back as per the aforesaid modus operandi, it cannot be held conclusively that either no donation was paid by the assessee to SIES or the amount paid by the assessee was returned by SIES. Hence, the Ld. CIT(A) has wrongly confirmed the disallowance in question made by the AO based on wrong assumption. We, therefore set aside the finding of the Ld. CIT(A) and allow this ground of appeal of the assessee.
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