Appeal Allowed: Precedent Upheld, Donation Claim Validated, Disallowance Rejected

The Tribunal allowed the appeal, deleting the reassessment under section 143(3) r.w.s. 147 of the Income Tax Act for Assessment Year 2014-15, as the issue was covered by previous judgments in favor of the assessee. Additionally, the disallowance of the claim under section 35(1)(ii) of the Act was dismissed, as the genuineness of the donation was upheld, and the disallowance was found impermissible. The judgment underscores the importance of substantiating claims and complying with statutory requirements for deductions under the Income Tax Act.

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Issues:
Challenge to reassessment under section 143(3) r.w.s. 147 of the Act and disallowance of claim under section 35(1)(ii) of the Act.

Reassessment Challenge:
The appeal was against the order dated 08.03.2018 passed by the Commissioner of Income Tax (Appeals) – 5, Ahmedabad, which arose from the order dated 29.12.2016 passed by the ITO, Ward-5(3)(1), Ahmedabad under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 for Assessment Year 2014-15. The assessee challenged the reassessment under section 143(3) r.w.s. 147 of the Act. The Tribunal considered the relevant materials on record and found that the issue was squarely covered by previous judgments in favor of the assessee. The Tribunal allowed the appeal, and the reassessment was deleted.

Disallowance of Claim under Section 35(1)(ii):
The disallowance of the claim under section 35(1)(ii) of the Act to the tune of &8377; 3,50,000 was also challenged. The assessee had donated to an institution during the subsistence of approval, but the approval was later withdrawn. The Ld. AO disallowed the claim as the assessee failed to furnish the certificate issued by the prescribed authority to the institution granting approval for tax exemption. The Tribunal referred to a similar case where the genuineness of the donation was doubted based on a survey report. The Tribunal found that the issue in dispute was covered in favor of the assessee and dismissed the appeal of the Revenue. Consequently, the disallowance under section 35(1)(ii) for A.Y. 2014-15 was not permissible, and the addition was deleted. Therefore, the assessee's appeal was allowed.

This judgment highlights the importance of substantiating claims under the Income Tax Act and the significance of previous judgments in similar cases. The Tribunal's decision to allow the reassessment challenge and delete the disallowance emphasizes the need for proper documentation and compliance with statutory requirements to support deductions claimed under the Act.

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