TMI Blog2024 (1) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... ilar basis as in the present case. Therefore, AO is directed to allow the claim of deduction under section 35-AC of the Act. Appeal by the assessee is allowed. - Shri B.R. Baskaran, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Piyush Chhajed For the Revenue : Smt. Mahita Nair ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee challenging the impugned order dated 26/06/2023, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [ learned CIT(A) ], for the assessment year 2010-11. 2. In this appeal, the assessee has raised the following grounds: The Grounds of Appeal mentioned hereunder are without prejudice to one another:- 1. On the facts and circumstances of the case, the ld. Commissioner of Income Tax (Appeals), NFAC erred in confirming the Notice issued u/s. 148 without obtaining requisite satisfaction as required u/s. 151(2) of the Income Tax Act and therefore the said Notice is void ab initio and bad in law. 2. On the facts and circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reassessment proceedings, the assessee was asked to show cause as to why the donations made by it to Navjeevan Charitable Trust be not treated as non-genuine and corresponding claim of deduction under section 35-AC of the Act be not disallowed. In response thereto, the assessee submitted that there is no material available on record that the donation was received by the trust and after deduction of commission the cash was given to the assessee. It was further submitted that nowhere assessee s name has been mentioned for cash returned back in view of donations made. The assessee also submitted that the grant of income tax exemption certificate and time-to-time renewal of the same makes the assessee to believe that the trust activities are being carried out for the purpose for which the approval was granted. The Assessing Officer ( AO ) vide order dated 22/12/2017 passed under section 143(3) read with section 147 of the Act did not agree with the submissions of the assessee and held that it is established beyond doubt that Navjeevan Charitable Trust was only involved in taking donations and giving the cash back to the donors and this fact has also been accepted by the trustee of Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e statement of the trustee recorded during the course of search action under section 132 of the Act at the premises of Navjeevan Charitable Trust. We find that a similar issue came up for consideration before the Co-ordinate Bench of the Tribunal in assessee s own case in Ravindra K. Reshamwala v/s DCIT, in ITA No.2648/Mum./2022, for the assessment year 2009-10, wherein assessee claimed deduction under section 35-AC of the Act in respect of donation made to Navjeevan Charitable Trust. The Co-ordinate Bench of the Tribunal vide its order dated 03/04/2023 decided the issue in favour of the assessee by observing as under:- 10. Considered the rival submissions and material placed on record, we observe from the record that assessee has raised grounds challenging the reopening as well as on merit. Since the issue involved is covered in favour of the assessee on merits, we do not intend to go into jurisdictional issue at this stage. We kept open this ground open. 11. Coming on merits, we observe that assessee has made the donation on 30.01.2009 and assessee has submitted all the relevant information with regard to payment of donation and all these donations were made through ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the trust did not have valid registration or its registration stood withdrawn. It was only subsequently that the approval was withdrawn. This being so, the deduction could not be denied to the assessee since Ld. AO failed to conduct any inquiry before making disallowance and except for mere allegations, he did not brought on record any fact to establish that donation given by the assessee was subsequently returned back in cash. The assessee, in our opinion, has duly discharged the onus casted upon him and it was incumbent upon Ld. AO to refute the same. However, no such inquiry has been conducted and the deduction has been denied more on mere allegations. Therefore, the deduction could not be denied to the assessee as held by this very bench in the case of Devajyoti N. Bhattacharya V/s ACIT (ITA No. 5051/Mum/2018 order dated 12/03/2020). Our observations therein were as follows: - 4. Upon due consideration, we find that the assessee was denied aforesaid deduction, in more or less similar factual matrix, in AYs 2009-10, 2012-13 2014-15 which was agitated before this Tribunal vide common order dated 30/09/2019. The coordinate bench, vide para-7, held that that the assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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