ITAT Allows Tata Social Welfare Trust’s Deductions u/s 80G & 80GGA Despite Technical Filing Issues of ITR [Read Order]
The AO had rejected the 80GGA claim, noting it was not specifically claimed in the ITR. The Tribunal held that substantive proof of donations to approved institutions takes precedence over procedural defects.
TATA - social - welfare - Taxscan
TATA - social - welfare - Taxscan
The Mumbai bench of Income Tax Appellate Tribunal (ITAT) allowed Tata Social Welfare Trust’s claims for deductions under Sections 80G and 80GGA, despite technical issues in the filing of the income tax return.
The appeal concerned the disallowance of charitable deductions claimed by Tata Social Welfare Trust under Sections 80G and 80GGA of the Income Tax Act, 1961.
While computing total income, the Trust had claimed deductions under both sections, but in the filed return of income, only the deduction under Section 80G was specifically claimed. The AO rejected the claim under Section 80GGA on technical grounds, noting that no separate column existed in the ITR for claiming such deduction, and that no revised return had been filed.
The CIT(A) allowed the deduction, observing that technical limitations in the ITR should not impede substantive claims, provided the Trust furnished requisite proofs of donations to approved charitable entities. The revenue appealed to the ITAT, contending that deductions under Section 80GGA were inadmissible as they were raised for the first time during appellate proceedings.
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The ITAT carefully considered the statutory framework under Sections 80G and 80GGA, noting that Section 80G(4) permits deductions for donations to approved institutions beyond mere technicalities in filing. Relying on Coordinate Bench decisions, including RD Tata Trust v. ITO (2023) and Navajbai Ratan Tata Trust v. PCIT (2025), the Tribunal emphasised that the absence of a separate column in the ITR or lack of a revised return cannot defeat substantive charitable claims where proof of donation exists.
The Tribunal observed that the donations were made to approved institutions and the amounts claimed were fully substantiated in the assessment proceedings. The ITAT held that the statutory intent under Sections 80G and 80GGA is to promote charitable contributions, and technical defects should not impede the claim of eligible deductions.
Accordingly, the two-member bench comprising N.K. Billaiya (Accountant Member) and Saktijit Dey (Vice President) upheld the CIT(A)’s decision, allowing the Trust’s deduction claims under Sections 80G and 80GGA. The revenue’s appeal was dismissed, reaffirming the principle that technical filing limitations cannot override substantive entitlements under the Act.
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