TMI Blog2020 (7) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... de. We are of the view that the interest of justice shall be met if the disallowance is restricted to 10% of the expenses. Deduction claim u/s 80G - AR s contention that the amount of donation has been made to SPYM through banking channels and has the relevant receipts but it could not be produced for verification before lower authorities - As further his prayer that an opportunity be granted to him to produce the same before the lower authorities - HELD THAT:- Assessee s submission that the approval of the Trust u/s 80G continues and has not been withdrawn has not been controverted by Revenue. Considering the aforesaid submission and undertaking given by the AR, we are of the view that one more opportunity be granted to the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal of the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal before us and has raised the following grounds :- 1. The order of the Ld CIT(A) is erroneous both in law and on facts. 2. The Ld CIT(A) erred in dismissing the Appeal. 3. The Ld CIT(A) erred in upholding the disallowance of Land Development Expenses for ₹ 19,17,251/-, without appreciating the fact that the assessee maintains all the relevant documents pertaining to the expenses. 4. Without prejudice to ground no.3, the Ld CIT(A) ought to have appreciated that the disallowance of land development expenses @20% is on very high side. 5. The Ld CIT(A) has erred in disallowing the deduction claim u/s 80G for ₹ 26,82,500/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort of the claim. AO noted that assessee only produced the ledger extract of the expenditure but did not produce any evidence to support the claim. In the absence of any supporting, AO proceeded to disallow 20% of the Land Development Expenses which worked out to ₹ 19,17,251/- and made its addition. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who upheld the action of AO. Aggrieved by the order of CIT(A), assessee is now before us. 7. Before us, Learned AR pointed to the Ledger account of the Land Development Expenses which is placed at Page No.24 of the paper book. He submitted that incurring of expenses has not been doubted by the Revenue authorities but as the assessee could not produce the relevant de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt proceedings, AO noticed that assessee had claimed deduction of ₹ 26,82,500/- u/s 80G of the Act (being 50% of the actual donation of ₹ 53,65,000/-). The assessee was asked to furnish the evidence and produce receipts for the claim of deduction. AO noted that the perusal of Ledger account revealed that most of the entries were journal entries and further assessee did not produce any receipts to support the claim. He, therefore, held that assessee did not qualify for deduction u/s 80G and accordingly, denied the claim of deduction. Aggrieved by the order of AO assessee carried the matter before the CIT(A) who upheld the order of AO. While upholding the addition, Learned CIT(A) also noted that the approval by DIT(E) granting app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposition that once statute gives perpetuity to exemptions granted u/s 80G(5), same could not be withdrawn without issuing show-cause notice to the Trust. He therefore, submitted that assessee be granted an opportunity to produce the receipts before the AO so as to prove about the genuineness of the donation. He, further submitted that the assessee undertakes to produce required details before the AO. On the other hand Learned DR did not seriously objected for the granting of an opportunity to the assessee for producing the evidence before the AO but however supported the order of lower authorities. 12. We have heard the rival submissions and perused the material available on record. Before us, it is AR s contention that Assessee want ..... X X X X Extracts X X X X X X X X Extracts X X X X
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