Appeal Dismissed: Inconsistent Donation Claims under Section 80G; ITAT Remits Issue for Further Examination

The appellant's appeal regarding the disallowance of an alternative claim under section 80G for a donation amount of Rs. 1,11,111/- during section 154 proceedings was rejected by the Ld. CIT(A) and upheld by the ITAT. The appellant's inconsistent claims and the expiration of approval under section 80G(vi) before the donation date led to the dismissal of the claim for deduction. The ITAT remitted the issue to the Assessing Officer for further examination of the approval's validity, emphasizing the necessity of a revised return for revised claims and verifying approvals for deductions under the Income Tax Act.

---

---

Issues:
1. Disallowance of alternative claim made under section 80G during proceedings under section 154 for a donation amount.
2. Validity of the claim of deduction under section 80G for the donation amount of Rs. 1,11,111/-.
3. Expiry of approval under section 80G(vi) of the Income Tax Act before the donation date.

Analysis:
1. The appellant's appeal arose from the order of the Ld. CIT(A) regarding the disallowance of an alternative claim made under section 80G during section 154 proceedings for a donation amount of Rs. 1,11,111/-. The Assessing Officer observed that the appellant had constantly changed their claim of deduction without filing a valid revised return. The Hon'ble Supreme Court's decision in Goetze India Ltd. 284 ITR 323 was cited, emphasizing the necessity of a revised return for revised claims. The appellant's new claim during rectification proceedings was rejected as unacceptable due to the absence of a valid revised return.

2. The Ld. CIT(A) upheld the Assessing Officer's decision, noting the appellant's inconsistent claims regarding the donation amount. The original return claimed the donation under section 80GGA, which was later withdrawn in a subsequent return. The rectification application sought to correct the claim from section 80GGA to section 80G. However, the Ld. CIT(A) found the appellant's intentions regarding the donation claim to be ingenuine. Additionally, the approval under section 80G(vi) from the Commissioner of Income Tax had expired before the donation date, leading to the dismissal of the claim for deduction of the donation amount.

3. The ITAT, upon hearing both parties, considered the Assessing Officer's rejection of the claim in light of the Supreme Court's decision in Goetze India Ltd. 284 ITR 323. The ITAT noted the expired approval under section 80G(vi) before the donation date, which could impact the validity of the claim. To verify this crucial aspect, the issue was remitted to the Assessing Officer for examination of the documentary evidence regarding the validity of the donee's approval. Depending on the verification outcome, the claim's legitimacy would be determined accordingly. Consequently, the ITAT allowed the appeal by remitting the issue to the Assessing Officer for further evaluation.

In conclusion, the judgment addressed the disallowance of an alternative claim under section 80G, the genuineness of the claim for deduction, and the impact of an expired approval under section 80G(vi) on the donation deduction claim. The decision provided clarity on the necessity of a revised return for revised claims and highlighted the importance of verifying the validity of approvals for deductions under the Income Tax Act.

---