Donation deduction remains allowable when eligibility existed at payment time and no evidence shows cash return or bogus contribution.

Deduction for donation to an institution eligible under section 35(1)(ii) could not be disallowed merely because the institution's approval was withdrawn after the donation was made. The donation was made when the donee was notified as eligible, and the later withdrawal, without contrary evidence, did not by itself show that the donation was bogus. Banking-channel payment, confirmation of utilisation of funds, and no material showing cash return of the amount supported the assessee's claim, so the onus was treated as discharged and the deduction was allowable.

---

---

Issues: Whether the disallowance of deduction claimed on donation made to an institution whose approval under section 35(1)(ii) was withdrawn subsequent to the donation was sustainable.

Analysis: The donation was made when the donee institution was notified as eligible. The withdrawal of approval occurred later and, by itself, did not establish that the donation was bogus. The finding also rested on the absence of evidence that the donated amount was returned in cash or that any specific contrary material was brought on record. The payment through banking channels and confirmation of utilization of funds supported the assessee's claim, and the onus was treated as discharged.

Conclusion: The disallowance was not justified and the claim of deduction was allowable.

---