2023 (12) TMI 979

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....peal, the assessee has raised the following grounds:- "1. The Re-assessment proceedings-initiated u/s 147 and reassessment order dated 26-12-17 passed u/s 143(3) r.w.s. 147 are bad in law, for the following reasons- a) The Ld. AO ACIT 20(3) has no jurisdiction to initiate the re-assessment proceedings and the Hon. Pr. CIT-20 approving the re-assessment proceedings was not the jurisdictional Pr. CIT. b) The Re-assessment proceedings are based on information received from DCIT Central Circle-2(1), Mumbai. The Ld.AO ACIT 20(3) without making any independent inquiry initiated with re-assessment proceedings on borrowed satisfaction. c) The AO neither shared any documents/evidences in its possession nor provided the opportunity to cross e....

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....al. Accordingly, in view of the submissions of the learned AR, we, at the outset, are considering the issue raised on merits. 4. The issue arising in grounds No. 2 and 3, raised in assessee's appeal, pertains to disallowance of deduction claimed under section 80-GGA of the Act in respect of donation made by the assessee. 5. The brief facts of the case pertaining to this issue, as emanating from the record, are: The assessee is an individual and for the year under consideration filed its return of income on 22/06/2010 declaring a total income of Rs. 1,06,67,608 after claiming deduction under section 80-GGA in respect of donation of Rs. 5,00,000 to the Navjeevan Charitable Trust. Subsequently, on the basis of information received from the D....

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....n Charitable Trust. Subsequently, the aforesaid notifications were withdrawn vide notification dated 30/11/2016. As per the assessee, in view of Explanation to section 35-AC(2) of the Act the deduction to which the assessee is entitled in respect of any sum paid shall not be denied merely on the ground that subsequent to the payment of such sum by the assessee the approval so granted or the notification has been withdrawn. Thus, it was submitted that the deduction under section 80-GGA of the Act cannot be denied merely on the basis of the subsequent withdrawal of the notifications on 30/11/2016 under section 35-AC of the Act. 7. Before proceeding further, it is pertinent to note the provisions of the Act which are relevant for the adjudica....

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....on 80-GGA of the Act, the assessee is entitled to claim a deduction in respect of any sum paid in the previous year to a public sector company, local authority, association, or institution approved by the National Committee for carrying out any eligible project or scheme under section 35-AC of the Act. Further, Explanation-1 to section 80-GGA(2)(bb) of the Act further provides that the deduction to which the assessee is entitled of any sum paid to the aforesaid authority shall not be denied merely on the ground that subsequent to the payment of such sum by the assessee the approval granted has been withdrawn or the notification notifying the eligible project or scheme referred to in section 35-AC has been withdrawn. 9. Section 35-AC of the....

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....titution has been withdrawn." 10. From the perusal of the aforesaid Explanation, at the outset, it is evident that the same has been worded similar to Explanation-1 to section 80-GGA(2)(bb) of the Act. Thus, from the perusal of the Explanation to section 35-AC(2) of the Act as well as Explanation-1 to section 80-GGA(2)(bb) of the Act, it is evident that the legislature has specifically provided that subsequent withdrawal of approval granted to association or institution or subsequent withdrawal of notification notifying the eligible project or scheme cannot be the sole basis for disentitling the assessee to claim deduction in respect of payment made to the said association or institution. 11. Undisputedly, in the present case, the assesse....