Tribunal Upholds Assessee's Relief on Deductions, Dismisses Revenue's Appeal

The Tribunal upheld the relief granted to the assessee by the CIT(A) regarding the disallowance of deduction u/s 80B for A.Y. 2012-13, dismissing the Revenue's appeal. For the disallowance of deduction u/s 35(2AB) for A.Y. 2013-14, the Tribunal accepted the appellant's claim in principle and directed the AO to verify the facts. The issues of amortization of lease charge disallowance and adhoc disallowance of vehicle expenses were resolved in favor of the appellant. The Tribunal allowed the appeal for A.Y. 2012-13 and partly allowed the appeal for A.Y. 2013-14, emphasizing compliance with registration requirements and timely filing of deduction claims.

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Issues:
1. Disallowance of deduction u/s 80B for A.Y. 2012-13.
2. Disallowance of deduction u/s 35(2AB) for A.Y. 2013-14.
3. Amortization of lease charge disallowance.
4. Adhoc disallowance of vehicle expenses.

Issue 1: Disallowance of deduction u/s 80B for A.Y. 2012-13:
The appellant challenged the disallowance of deduction u/s 80B amounting to Rs. 50,00,000/- due to the recipient not having registration. The Tribunal referred to a previous order where a similar issue was adjudicated against the department, emphasizing that if an application for exemption is not entertained within 6 months, the trust is deemed to have been granted approval. The Trust in question had valid approvals under Sec. 12A and Sec. 80G, as confirmed in the assessment order. The Tribunal upheld the relief granted to the assessee by the CIT(A), dismissing the Revenue's appeal as no distinction of facts or law was pointed out in their favor.

Issue 2: Disallowance of deduction u/s 35(2AB) for A.Y. 2013-14:
The appellant sought to revive the disallowance of sec. 35(2AB) deduction claim of Rs. 1,99,33,256/- during assessment. The CIT(A) rejected the claim, stating that the appellant could have filed the claim in the original or revised return based on the approval received earlier. The Tribunal, after considering the prescribed authority's approval and lack of fault found by lower authorities, accepted the appellant's claim in principle, directing the AO to verify the facts. Additionally, the Tribunal allowed the appellant's claim regarding adhoc disallowance of vehicle expenses based on judicial consistency.

Issue 3: Amortization of lease charge disallowance:
The issue of amortization of lease charge disallowance of Rs. 4,717/- was not pressed during the hearing and was rejected accordingly.

Issue 4: Adhoc disallowance of vehicle expenses:
The appellant succeeded in a previous case regarding adhoc disallowance of vehicle expenses, and the Tribunal held that the lower authorities erred in making the disallowance in the current case. The claim was accepted based on judicial consistency.

In conclusion, the Tribunal allowed the appeal for A.Y. 2012-13 and partly allowed the appeal for A.Y. 2013-14, directing necessary actions by the Assessing Officer. The judgment addressed various issues related to deduction disallowances and highlighted the importance of compliance with registration requirements and timely filing of claims for deductions under the Income-tax Act, 1961.

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