Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 35 - AT - Income TaxReopening of assessment u/s 147 - assessee was wrongly granted the deduction u/s 80GGB in respect of its donation to Electoral Trust - Held that:- On careful reading of the provision of section 293A, it made clear that assessee falls in the category as referred under sub-section 2 of section 293A. Sub-section (2) of section 293A permits contribution to any Political Parties by a Company either directly or indirectly. The ld. AR of the assessee throughout his submission argued that the contribution made to ‘Electoral Trust’ is covered by the word “indirectly” and qualified for the deduction u/s 80GGB of the Act for the year under consideration. We are in full agreement with the submission of ld AR of assessee that the case of the assessee is covered by the Explanation attached with section 80GGB. We have seen that the ld. CIT(A) correctly appreciated that the contribution to a Political Parties can be either directly or indirectly to qualify the deduction u/s 80GGB of the Act. CIT(A) correctly appreciating the provisions of section 293 of Companies Act and the deduction in respect of contribution given by the Company to the Political Parties. The order of ld. CIT(A) is based on correct appreciation of the provisions and we do not find any infirmity or illegality for our interference. - Decided against revenue
|