The Income Tax Appellate Tribunal “A” Bench, Ahmedabad, has recently, in an appeal filed before it, held that the assessee is entitled to 80G deduction with regard to the contributions or donations made to certain relief funds and charitable institutions, such as Chief Minister KanyaKelvani Nidhi.
The aforesaid observation was made by the Tribunal when an appeal was filed before it by the Revenue against the order of the Commissioner of Income-tax (Appeals)-10, Ahmedabad [CIT(A)], dated 10th December-2015.
The assesseebeing a partnership-firm engaged in the business of road construction, the agony of the Revenue was with regard to the action of the CIT(A) in deleting the addition of Rs.2,88,85,846/- made by the Assessing Officer u/s.68 of the Income Tax Act, 1961,on account of unsecured loans, treating the same as unexplained cash credit.
Hearing the counter arguments of both the sides, perusing the materials on record and finally dismissing the Revenue’s appeal in result, the Tribunal observed as below:
“ We have heard the arguments of both the sides and also perused the relevant material available on record. It is observed that even though the original receipt for payment of donation of Rs.50,000/- made to Chief Minister KanyaKelvani Nidhi was not produced by the assessesas the same was lost or misplaced, sufficient evidence was produced by the assessee to support and substantiate its claim of having paid the said donation. As noted by the Ld.CIT(A) in his impugned order, the said evidence was sufficient to verify the claim of the assessee regarding payment of donation of Rs.50,000/- to Chief Minister KanyaKelvani Nidhi.Even the donation receipt issued by the Executive Engineer Panchayat Department Dahod evidencing payment of donation was produced by the assessee. Keeping in view these details and documents furnished by the assessee to support and substantiate its claim of donation of Rs.50,000/- paid to Chief Minister KanyaKelvani Nidhi, the Ld.CIT(A), in our opinion, has rightly deleted the disallowance of assessee’s claim for deduction u/s.80G of the Act made by the Assessing Officer. We, therefore, uphold the impugned order of the Ld.CIT(A) deleting the disallowance made by the Assessing Officer on account of assessee’s claim for deduction u/s.80G of the Act and dismiss the ground No.3 of Revenue’s appeal.”
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