AOP entitled to Section 80G/80GGA deductions for donations despite revenue's objections, matter remanded for verification

ITAT Delhi allowed the appeal regarding deduction under Section 80G/80GGA read with Section 35AC for donations to eligible institutions. The assessee, an AOP, had consistently claimed and received these deductions since AY 1993-94, including in scrutiny assessment for AY 2013-14. Since the assessee did not claim benefits under Sections 11 and 12, it remained entitled to Chapter VI-A deductions. The revenue failed to produce contrary evidence. The matter was remanded to AO for verification of donation details and to grant relief accordingly, following coordinate bench precedent on identical facts.

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Issues:
The judgment involves the denial of deduction claimed by the appellant under Chapter VI-A of the Income Tax Act, specifically u/s 80-G/80GGA read with Section 35AC, by the Assessing Officer (AO), which was upheld by the National Faceless Appeal Centre, Delhi.

Summary:

Issue 1: Denial of Deduction under Chapter VI-A of the Act
The appellant, a Public Charitable Trust, filed a return declaring total income as Nil. The denial of deduction claimed under Section 80GGA of the Act by the AO was challenged through an appeal. The appellant had not claimed benefits under Section 11 and 12 of the Act since Assessment Year 1993-94. The denial of deduction was based on the inconsistency between the information furnished in the return and the claim made. The AO's decision was affirmed by the CIT(A) based on the Auditor's report and the provisions of Section 143(1)(a)(ii) of the Act.

Issue 2: Justification for Claiming Deduction
The appellant contended that due to non-compliance with Section 11(5) and Section 13(1)(d) of the Act, it did not claim benefits under Section 11 and 12. The appellant argued for entitlement to deduction under Section 80G/80GGA for donations made to eligible institutions. It was emphasized that the appellant consistently claimed deductions under Section 80GGA since Assessment Year 1993-94. The appellant also cited a previous assessment year where similar deductions were allowed.

Issue 3: Judicial Consideration and Relief Granted
The Tribunal considered the arguments of both parties and reviewed relevant records. It noted that the appellant had not claimed benefits under Section 11 and 12 as per the AO's intimation. Consequently, the Tribunal found the appellant entitled to deduction under Section 80GGA. The Tribunal highlighted the lack of evidence presented by the Revenue to counter the appellant's claims. Reference was made to a previous case where similar relief was granted. The Tribunal directed the AO to verify the details of donations made by the appellant and grant relief accordingly.

In conclusion, the appellant's appeal was allowed for statistical purposes, with the Tribunal providing directions to the AO for further verification and grant of relief.

Order pronounced on 8th May, 2024.

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