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TMI Blog2020 (1) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... t the law, equity and justice. 2 The Ld. CIT(A) has erred in law and on facts in upholding the order of the Ld. A.O. of disallowance of deduction claimed U/S 35(i)(ii) of Rs. 22,75,000/-. 3 The Ld. CIT(A) has erred in law and on facts in upholding the addition U/S 14A of Rs. 37,500/-." 3. The fact in brief is that the assessee has filed return of income on 27th July, 2014 declaring total income of Rs. 28,79,160/-. The case was subject to scrutiny assessment and notice u/s. 143(2) of the act was issued on 29th Sep, 2015. During the course of assessment proceedings the assessee was asked to furnish the detail about the claim of deduction u/s. 35(1)(ii) on account of donation. On verification of the detail furnished by the assessee, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not received the amount back in cash. The ld. counsel has also contended that no opportunity for cross examination was given to the assessee. The ld. counsel has placed reliance on the decision of Co-ordinate Bench in the following Cases:- (i). ACIT Vs. M/s Thakkar Govindbhai Ganpatlal HUF vide ITA No. 2318/Ahd/2017 dated 17-07-2019 and (ii). SG Vat Care Pvt. Ltd. Vs. ITO Vide ITA No. 1943/Ahd/2017 dated 15- 01-2019. The ld. departmental representative has supported the order of ld. CIT(A) 6. We have heard both the sides and perused the material on record carefully. It is observed that identical issue on similar fact has been adjudicated by the Co-ordinate Benches of the ITAT in various cases regarding claim of donation u/s. 35( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that this concern was misusing the benefit of notification issued by the Income Tax Department. It has been getting donations from various sources, and after deducting certain amount of commission, these donations were refunded in cash. On the basis of that survey report registration granted to its favour was cancelled. On the basis of the outcome of that survey report, the ld.AO construed the donation given by the assessee as bogus. Appeal to the ld.CIT(A) did not bring any relief to the assessee. 4. Before us, the ld.counsel for the assessee contended that donations were given on 25.3.2014. At that point of time, donee was notified as eligible institution and fall within the statutory eligibility criterion. Certificate for receiving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be any disallowance on this issue. We allow this ground."
6. There is no disparity on the facts. On the basis same survey report, the genuineness of the donation has been doubted in the case of the assessee also. Therefore, the issue in dispute is squarely covered in favour of the assessee. Respectfully following the order of the ITAT in the case of S.G.Vat care P.Ltd., we do not find any merit in the appeal of the Revenue. It is dismissed."
Respectfully following the above cited decision and finding of the Coordinate Bench of the ITAT on similar facts and identical issue, the appeal of the assessee is allowed.
7. In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 26-11-2019 X X X X Extracts X X X X X X X X Extracts X X X X
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