2020 (1) TMI 396

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..... The order passed by the Ld. CIT(A) is against the law, equity and justice. 2 The Ld. CIT(A) has erred in law and on facts in upholding the order of the Ld. A.O. of disallowance of deduction claimed U/S 35(i)(ii) of Rs. 22,75,000/-. 3 The Ld. CIT(A) has erred in law and on facts in upholding the addition U/S 14A of Rs. 37,500/-." 3. The fact in brief is that the assessee has filed return of income on 27th July, 2014 declaring total income of Rs. 28,79,160/-. The case was subject to scrutiny assessment and notice u/s. 143(2) of the act was issued on 29th Sep, 2015. During the course of assessment proceedings the assessee was asked to furnish the detail about the claim of deduction u/s. 35(1)(ii) on account of donation. ....

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....t it has paid the donation by account payee cheque and it has not received the amount back in cash. The ld. counsel has also contended that no opportunity for cross examination was given to the assessee. The ld. counsel has placed reliance on the decision of Co-ordinate Bench in the following Cases:- (i). ACIT Vs. M/s Thakkar Govindbhai Ganpatlal HUF vide ITA No. 2318/Ahd/2017 dated 17-07-2019 and (ii). SG Vat Care Pvt. Ltd. Vs. ITO Vide ITA No. 1943/Ahd/2017 dated 15- 01-2019. The ld. departmental representative has supported the order of ld. CIT(A) 6. We have heard both the sides and perused the material on record carefully. It is observed that identical issue on similar fact has been adjudicated by the Co-or....

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....ta. A survey action was carried out at the premises of the donee wherein it revealed to the Revenue that this concern was misusing the benefit of notification issued by the Income Tax Department. It has been getting donations from various sources, and after deducting certain amount of commission, these donations were refunded in cash. On the basis of that survey report registration granted to its favour was cancelled. On the basis of the outcome of that survey report, the ld.AO construed the donation given by the assessee as bogus. Appeal to the ld.CIT(A) did not bring any relief to the assessee. 4. Before us, the ld.counsel for the assessee contended that donations were given on 25.3.2014. At that point of time, donee was notified....