2015 (7) TMI 1386
X X X X Extracts X X X X
X X X X Extracts X X X X
....6,157/- made by the AO by disallowing contribution made to 'Sparsh Trust' without appreciating the fact that assessee failed to prove direct business nexus and it is not an allowable expenditure u/s 37(1)" 2. The ld. CIT (A) allowed the claim of the payments to "Sparsh Trust" relying on ITAT's order in assessee's own case in ITA No. 820/JP/2011 dated 15.03.2012 holding as under :- "After considering the submissions, orders of the authorities below, we find that assessee deserve to succeed in its ground raised. It is noticed that before creating SPARSH, the assessee was doing all these expenditure itself. Just for betterment of administrative services, the assessee created the Trust through whom these expenses are incurred. The Profit & ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s a deficit of Rs. 23,48,303/- to the trust sin the year under consideration. Such deficit is met out of the contribution made by the assessee to the trust. It is further seen that before creating this Trust, the assessee was incurring all these expenses itself and all these expenses were allotted by the department while completing assessment under section 143(3). Therefore, this is not a case that assessee has made any donation to any Trust and, therefore, the same cannot be allowed as business expenditure. The ld. CIT (A) has disallowed the claim of the assessee by observing that since assessee has made donation under section 80G and, therefore, deduction under section 80G is allowable whereas the facts are otherwise. The assessee ha....