ITAT directs AO to reconsider disallowance & deduction, grants hearing opportunity

The ITAT allowed the appellant's appeal, directing the AO to reconsider the disallowance under section 43B(f) and deduction of donation under section 80G in light of legal precedents and evidence, granting the appellant a proper hearing opportunity.

---

---

Issues:
1. Disallowance under section 43B(f) of the Income Tax Act, 1961.
2. Disallowance of deduction of donation under section 80G of the Act.

Issue 1: Disallowance under section 43B(f) of the Income Tax Act, 1961:
The appellant challenged the disallowance under section 43B(f) of the Act amounting to Rs. 5,17,130. The appellant relied on a decision of the Calcutta High Court which was subsequently stayed by the Supreme Court. The AO disallowed the amount pending the Supreme Court's decision. The CIT(A) upheld the disallowance. The appellant argued for remanding the issue back to the AO following the Supreme Court's decision in the Exide case. The ITAT directed the AO to decide the issue in light of the Supreme Court's decision, granting the appellant a proper hearing opportunity.

Issue 2: Disallowance of deduction of donation under section 80G of the Act:
The AO disallowed a deduction of Rs. 1,25,000 claimed under section 80G due to lack of supporting documents. The CIT(A) noted a donation of Rs. 2,50,000 to a charitable trust but dismissed the claim as the donation receipt was issued after the limitation period. The appellant contended that evidence could be provided to show the donation was made and credited to the trust. The ITAT remanded the issue to the AO for fresh consideration, allowing the deduction if payments were verified to have been credited or encashed by the trust within the legal framework.

In conclusion, the ITAT allowed the appellant's appeal for statistical purposes, directing the AO to reconsider both issues in accordance with the legal precedents and evidence provided.

---