Deduction for cheque-paid donation allowed despite wrong section claim where payment to approved institution was genuine.

A donation paid by cheque to an institution approved under section 35(1)(ii) was treated as substantively eligible for deduction, even though the assessee had claimed it under section 80GGC/80GGA. The genuineness of the payment was not disputed, and the benefit could not be denied merely because the claim was made under an incorrect provision. Technical misclassification did not override the underlying statutory entitlement, so the disallowance was deleted and relief was granted to the assessee.

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Issues: Whether the disallowance of the donation-related deduction claimed under section 80GGC/80GGA could be sustained when the payment was made through banking channels to an approved institution eligible under section 35(1)(ii), and whether the claim could be denied merely because it was made under an incorrect provision.

Analysis: The donation of Rs. 1,60,000/- was made by cheque to an approved institution notified under section 35(1)(ii), and the genuineness of the payment was not in dispute. The claim, though made under section 80GGC/80GGA, was substantively eligible under section 35(1), and a mere mistaken classification of the claim could not defeat the underlying statutory benefit. The record also showed that the denial was sustained on technical grounds despite the absence of any adverse impact on the total income.

Conclusion: The disallowance was held to be unsustainable and was deleted, granting relief to the assessee.

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