2018 (10) TMI 730

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....kata [ in short the ld AO] under section 143(3) r.w.s 147 of the Income Tax Act, 1961 (in short "the Act") dated 31.03.2015 for the Assessment Year 2012-13. 2. The first issue to be decided in this appeal is as to whether the ld CITA was justified in holding that the assessee was eligible for deduction u/s 80GGA of the Act in the facts and circumstances of the case. The inter connected issue is with regard to allowability of professional and legal fees of Rs. 29,53,889/- as expenditure under the head income from other sources. 3. The brief facts of this issue are that the assessee is a religious trust created by Late Baikanto Nath Dutt by virtue of a Will dated 19.7.1916 and a Codicil dated 30.7.1919. By this Will and Codicil, the tes....

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....provisions of the Act. The return was processed u/s 143(1) of the Act. Later the assessment was reopened by issuance of notice u/s 148 of the Act on 27.3.2014. The assessee replied that the return already filed may be treated as a return in response to notice issued u/s 148 of the Act. 3.2. The ld AO observed that the assessee had shown interest income of Rs. 4,79,44,505/- under the head 'income from other sources'. During the year under consideration, the assessee trust paid a donation of Rs. 50 lakhs to Shri Arvindo Institute of Applied Scientific Research , registered u/s 35(1)(ii) of the Act for conducting scientific research and Rs. 50 lakhs to Population and Social Development for conducting eligible project / scheme for carrying o....

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....t of expenditure of Rs. 2,27,19,475/- ( 2,43,09,908 -15,90,433) was disallowed by the ld AO in the assessment framed u/s 143(3) / 147 of the Act on 31.3.2015. 5. Before the ld CITA, the assessee pleaded for an alternative claim of deduction u/s 80GGA of the Act in respect of donations paid to organizations registered u/s 35(1)(ii) of the Act. This was allowed by the ld CITA after due examination of the various documents in this regard. He also directed the ld AO to grant deduction towards professional and legal expenses in the sum of Rs. 29,53,889/- on the ground that the same were incurred in connection with the maintenance of the property of the assessee trust. 6. Aggrieved, the revenue is in appeal before us. 7. We have heard th....

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.... Industrial Research (SIRO) vide No. SIROs/INF/99-TU-V dated 3.5.2011. 7.1. Similarly with regard to contribution made to Population and Social Development, we find from the materials available in pages 81 to 104 of the paper book filed before us, that contributions made thereon would be eligible for deduction u/s 35AC of the Act in respect of business assessees and u/s 80GGA of the Act in respect of non-business assessees. Similar documents supra were placed on record in respect of contributions to Population and Social Development by the assessee in the paper book. 7.2. We have also gone through the correspondences exchanged between this trust and assessee trust regarding application seeking for donation and acceptance of the assess....