2021 (5) TMI 64 - AT - Income Tax

ITAT allows appeal, overturns disallowed donation claim under Income Tax Act.

The appeal involved confirming the addition of Rs. 10 lakhs due to the disallowance of a claim made under section 35(1)(ii) of the Income Tax Act ... Disallowance of claim u/s. 35(1)(ii) - donation made to Herbicure Healthcare Bio Research Foundation (HHBRF) - AO stated the donation made by the assessee to Herbicure Healthcare Bio Research Foundation (HHBRF) was no longer valid in view of the notification of Ministry of Finance dated 6th Sep, 2016 which had withdrawn approval given u/s. 35(1)(ii) of the Act to HHBRF - HELD THAT:- Identical issue on identical facts has been decided in favour of the assessee by ITAT Ahmedabad in the case of ACIT vs. M/s. Thakkar Govindbhai Ganpatlal [2019 (7) TMI 1559 - ITAT AHMEDABAD] - The ld. counsel has reported that aforesaid decision of the ITAT was also confirmed by the Hon’ble High Court of Gujarat in the case of Principal CIT-3 vs. M/s. Thakkar Govindbhai Ganpatlal HUF, [2020 (2) TMI 31 - GUJARAT HIGH COURT]. The ld. Departmental Representative could not controvert these undisputed facts reported by the ld. counsel that the issue is covered in favour of the assessee by the aforesaid decision of the ITAT and Hon’ble High Court of Gujarat - Appeal of the assessee is allowed. Issues involved: Confirmation of addition on account of disallowance of claim made under section 35(1)(ii) of the Income Tax Act regarding a donation made to a foundation.Detailed Analysis:1. The appeal pertained to the issue of confirming the addition of Rs. 10 lakhs due to disallowance of a claim made under section 35(1)(ii) of the Income Tax Act regarding a donation made to Herbicure Healthcare Bio Research Foundation (HHBRF) for the assessment year 2014-15.2. The Assessing Officer contended that the donation made by the assessee to HHBRF was no longer valid as the Ministry of Finance had withdrawn approval for the foundation, leading to the disallowance of the claimed deduction.3. The CIT(A) dismissed the appeal of the assessee, upholding the Assessing Officer's decision.4. During the appellate proceedings, the assessee cited a similar case decided in their favor by ITAT Ahmedabad and confirmed by the High Court of Gujarat, where the issue was regarding a donation to the same foundation. The decision emphasized the lack of concrete evidence to doubt the genuineness of the donation.5. Both the ITAT and the High Court of Gujarat found that there was no evidence to question the donation made by the assessee, and the foundation confirmed the utilization of the donated amount for scientific research, discharging the onus placed upon the assessee.6. The Tribunal, following the precedent set by the previous decisions, allowed the appeal of the assessee, stating no interference was required in the impugned order.7. The appeal was allowed, and the order was pronounced on 09-04-2021.