Assessee's Appeals Partially Allowed for Donation Disallowance: Section 148 Notice Valid

The Tribunal partly allowed the assessee's appeals for assessment years 2012-13 and 2014-15. The disallowance of donation made to the School of Human Genetics & Population Health was overturned, with the Tribunal emphasizing that withdrawal of approval post-donation did not affect eligibility for deductions. The challenge to the validity of the notice issued under section 148 of the Act was dismissed. The orders were pronounced on June 15, 2021.

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Issues:
1. Reopening of assessment for assessment years 2012-13 and 2014-15.
2. Disallowance of donation made to School of Human Genetics & Population Health.
3. Validity of notice issued under section 148 of the Act.

Analysis:

Issue 1: Reopening of assessment
The appeals by the assessee were directed against the order of Commissioner of Income Tax(Appeals)-38 for the assessment years 2012-13 and 2014-15. The grounds raised in both appeals were identical, challenging the reopening of assessment. The assessee decided not to press the legal ground of challenging the reopening of assessment.

Issue 2: Disallowance of donation
The key issue raised by the assessee was against the disallowance of a donation made to School of Human Genetics & Population Health. The assessee had made a donation and claimed a deduction under section 35(1)(ii) of the Income Tax Act, which was later disallowed during reassessment. The Department alleged that the institution engaged in money laundering activities and the assessee was a beneficiary. However, the assessee argued that there was no evidence to suggest the donation was bogus, as the institution had valid approval at the time of donation. The Tribunal, citing relevant case laws, held that the withdrawal of approval post-donation did not affect the assessee's eligibility for deduction.

Issue 3: Validity of notice
In one of the appeals, the assessee challenged the validity of the notice issued under section 148 of the Act. However, the authorized representative of the assessee decided not to press this ground, resulting in the dismissal of this challenge.

In conclusion, the Tribunal partly allowed the appeals of the assessee for both assessment years 2012-13 and 2014-15, based on the findings related to the disallowance of the deduction for donations made to different institutions. The Tribunal emphasized that the withdrawal of approval post-donation did not impact the eligibility of the assessee for the claimed deductions. The orders were pronounced in open court on June 15, 2021.

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