TaxTMI 
TaxTMI 
2019 (9) TMI 1541
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.... by the assessee read as under : 1.1. The Id. CIT (A) erred in confirming the action of the assessing officer ("the A.O") whereby the AO disallowed the Appellant's claim of deduction under section 35AC of the Act amounting to Rs. 3,00,000/- being amount paid to Navjeevan Charitable Trust in a very cryptic and arbitrary manner. 1.2. While doing so the Id. CIT (A) failed to appreciate that: i. that the A.O while disallowing the Appellant's claim based his conclusion on suspicion, surmises and conjecture, taking into account irrelevant, extraneous and impermissible considerations and ignoring relevant material and considerations placed before him, ii. the Appellant had complied with the all the conditions laid down for claiming the....
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.... produced before him by the trustee of Navjeevan Charitable Trust; as per the documents, the said Trust is registered with Charity Commissioner, Mumbai and also u/s 12A of the Income Tax Act, 1961 with PAN : AAATN6332N; the Trust is also registered under FCRA, 1976. It was explained to the AO that on presentation of the above facts by one Mr. Ashok Bagadia, trustee of the said Trust, the assessee has given donation. It was further explained to the AO that on receipt on the notice to showcause, the assessee tried to contact Mr. Bagadia but was informed that Mr. Bagadia expired on 06.11.2014. Further, it was submitted before the AO that as per the copy of the official gazette Navjeevan Charitable Trust is registered and exemption u/s 35AC is ....
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....e re-assessment proceedings, the assessee, to substantiate his claim of donation of Rs. 3,00,000/-, had filed before the AO (i) Copy of Official gazette dated 12.01.2009, where the Central Government had notified the Trust for a period of 3 years beginning from financial year 2008 - 09, (ii) Copy of letter from Ministry of Home Affairs granting registration to the Trust under the Foreign Contribution (Regulation) Act, 1976, (iii) P.A.N. Card issued to the Trust (iv) Presentation given by the Trust to the Appellant for procuring donation for its activities (v) Receipt along with Form No. 58 A issued by the Trust for the donation given to it (vi) Copy of Bank Statement of the Appellant for the period 01.04.2008 to 31.03.2009. Further, i....
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....e Investigation Wing of the Department that all the expenses of the Trust were mere book entries and no genuine expenses were made by the Trust for the purpose of section 35AC of the Act. During the course of search, one of the trustees accepted that all the expenses were bogus and the donations received in cheques were returned in cash to all the donors after deducting nominal commission. The Ld. DR thus supports the order passed by the CIT(A). 7. We have heard the rival submissions and perused the relevant materials on record. Indisputably, the assessee, in order to substantiate his claim of donation of Rs. 3,00,000/- paid to Navjeevan Charitable Trust, submitted documents viz. (i) Copy of Official gazette dated 12.01.2009, where th....