TMI Blog2017 (3) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... ve seen the assessee’s letter dated 29.01.10 while giving the cheque of donation. The assessee has clearly mentioned that the donation may be treated as donation to the corpus fund/interest. The donation was made during the validity of certificate under section 80G in favour of Dr. D.Y. Patil University. We have perused the provisions of section 80G of the Act. On perusal, we do not find any condition wherein the donor may be held disentitled for the benefit of section 80G in case his relative or dependent is getting education in the institution where the donation is made. In our view, the AO wrongly made his conclusion that expenses was made by partner for securing admission of his son and was claimed as a deduction by showing the amount as donation. Thus, we delete the disallowance made under section 80G of the Act - Decided in favour of assessee Disallowance of interest expenses paid to partner - Held that:- AO disallowed the interest holding that payment of ₹ 30 lakhs paid on account of gift represents the personal expenses of partner as the same was disallowed by him. Since the amount of gift was disallowed, therefore the interest for two month on ₹ 30 lakhs whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of ₹ 34,59,518/- on account of bogus purchases. The Ld. A.R. of the assessee argued that assessee firm during the year under consideration purchased certain material required for manufacturing process from market. During the assessment when AO required information from the assessee to prove the genuineness of such purchases the assessee filed their invoices, delivery challan, and confirmation letters from the vendors. Despite the fact that assessee has provided complete information, the AO disallowed the entire amount of purchases only on the basis of information received from Sales Tax Department. The Ld. CIT(A) also not considered the evidence furnished before him, despite calling remand report of AO, and sustained the order of AO. On the other hand the Ld. D.R. for the Revenue supported the order of the authorities below and argued that Ld. CIT (A) has given reason to discard the additional evidence, which was filed for the first time before him during the first appellate stage only. 5. We have considered the rival contentions of the parties and perused the orders of authorities below. During the assessment proceedings the AO noticed that the assessee purchased materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire purchases of aggregate amount of ₹ 26,93,298/-. The AO, on the basis of affidavit dated 23.05.11 furnished to Maharashtra Sales Tax Department by Shri Manoj Anantrai Buch, partner of M/s. Bhagwati Trading Company that he has not made any genuine business of sale or purchase of any kind of goods such as M.S. Round, Aluminum sheets, M.S. Seamless, Copper Strips etc. and that he had issued only bills without giving delivery of goods to the selling parties, disallowed ₹ 7,66,220/-. The assessee was asked shown the purchases from M/s. Om Corporation of ₹ 31,656/-. The AO asked the assessee to file the confirmation form M/s Om Corporation. The assessee failed to file the confirmation from said party. As assessee failed to file any confirmation the AO disallowed ₹ 31,656/-. During first appellate proceeding before ld CIT(A), asked the assessee to furnish evidence for the use of material in the manufacturing and the stock register. As per the direction of ld CIT(A) assessee filed copy of stock register, and other related evidences. The assessee also seeks permission to file additional evidence consisting of details of quality of machine purchase manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourse in Dr. D.Y. Patil University. On the other hand, the Ld. D.R. for Revenue supported the order of authorities below. 8. We have considered the rival contention of the parties and perused the material available on record. The AO while framing the assessment order noticed that assessee has claimed deduction under section 80G of ₹ 15 lakhs against donation of ₹ 30 lakhs to Dr. D.Y. Patil University. The assessee was asked to give the details of donation by all family members and associate concern during the relevant financial year to Dr. D.Y. Patil University. Assessee vide reply dated 26.12.12 contended that Shri Anik Marfatia, son of Mrs. Amita Marfatia one of partners, has taken admission for MD course in Padmashree Dr. D.Y. Patil University. The total donation of 60 lakhs has been made i.e. ₹ 30 lakhs from the firm and ₹ 30 lakhs from associate firm i.e. M/s. Electropharma in which Mr. Amit Marfatia, husband of Mrs. Amita Marfatia are partners. On the basis of the reply furnished by assessee, the AO concluded that the donation was not voluntary but is an expense incurred by partner for securing admission of her son for Postgraduate Medical course an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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