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2018 (5) TMI 579 - AT - Income TaxDeduction u/s. 80GGC allowability - payment has been made to a newspaper being run by a political party - whether assessee has not given donation to any Political Party registered u/s. 29 of the Representative People Act, 1951? - Held that:- In the present case, the payment has been made to a newspaper being run by a political party for insertion of some advertisements in the said newsletter/newspaper. The assessee has made payment of ₹ 10,50,000/- to the newsletter/newspaper during April, 2010 to March, 2011. The Commissioner of Income Tax (Appeals) while allowing the assessee’s claim of deduction u/s. 80GGC observed t none of the receipts mention that the amount received is donation. However, for proper adjudication of this issue we deem it appropriate to restore the issue back to Assessing Officer for verification. If the assessee has made donation to a political party as defined u/s. 80GGC, the assessee is eligible to claim deduction under the provisions of aforesaid section. AO shall decide this issue after examining the documents on record Allowing expenditures without ascertaining the genuineness of expenditures - Held that:- The onus is on the assessee to prove that the expenditure has been incurred “wholly and exclusively” for the purpose of business. The assessee has failed to discharge this onus. Similar is the position in respect of payment made for Business Auxiliary Services allegedly received by assessee from Shri Sham Chopra. The Commissioner of Income Tax (Appeals) in the impugned order has not referred to any document to come to a conclusion that the expenditure is not personal in nature. In the absence of any documentary evidence connecting expenditure with the business of assessee, the payments made by the assessee towards legal fee ₹ 1 crore and Business Auxiliary Service ₹ 1.10 crore have to be disallowed. Accordingly, ground No. 2 raised in appeal by the Revenue is allowed.
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