2026 (4) TMI 247

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... circumstance of the case and in law, the learned Commissioner of Income-tax (Appeals) [CIT(Appeals)] erred in upholding the denial of the deduction by the learned Assessing Officer for a sum of Rs. 66,63,833/- under Section 57(iii) of the Act for the donations of Rs. 71,00,000/- paid by the appellant to the eligible trusts and Institutions as "Expenditure on the objects of Trust. The learned CIT(Appeals) erred in not considering the claims and contentions of the Appellant as contained in the written submissions furnished by the appellant in justification of the claim for the deduction for donations paid and also considering the various case laws cited and referred to in the said submissions. The Appellant prays that the l....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....from other sources is not allowable because the assessee has not established that the expenses are allowable u/s. 57(iii) of the Act. Therefore, the deduction claimed by the assessee u/s. 57 was disallowed and addition of Rs. 66,63,833/- was made to the total income of the assessee by assessing the total income at Rs. 4,20,15,610/- u/s. 143(3) of the Act vide order dated 2.2.2021. Aggrieved, assessee appealed before the Ld. CIT(A) who vide impugned order dated 19.5.2025 has upheld action of AO in denying the deduction u/s. 57(iii) of the Act and with regard to claim of deduction u/s. 80G, the AO was directed to verify the claim of deduction u/s. 80G of the Act and if the necessary conditions are satisfied the same shall be allowed by partly....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ust engaged in pursing various charitable objects and activities contained in the Memorandum of Association i.e. education, medical relief and advancement of any other object of general public utility and relief to the poor persons. The assessee has not claimed any benefit u/s. 11 and 12 of the Act in the return of income filed for the assessment year 2018-19. The assessee claimed deduction u/s. 57(iii) of the Act stating that donation paid in the nature of expenditure and the object of the trust. To support our view, we refer the judgement of the Hon'ble Delhi High Court in the case of DDIT(EXEMPTION) VS PETROLEUM SPORTS PROMOTION BOARD (2014) 111 DTR (DEL) 55 wherein, it has been held as under:- "7. The learned standing counsel f....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Though prima facie it would appear that the phraseology employed in s. 57(1) is different from s. 37(1). It has been held by the Supreme Court in CIT us. Rajendra Prasad Moody 1978 CTR (SC) 141: (1978) 115 ITR 519 (SC) that s. 57(1) must be construed broadly and the somewhat wider language of s. 37(1) should not affect the interpretation of s. 57(111). The assessee in the present case was created in 1979 with the object of promoting sports; there was no other object and all its constituents were giving grants/funds only for that purpose. In truth and reality the assessee was merely acting as a custodian or conduit to the constituents for the purpose of promoting sports activity inside and outside the country. The expenditure incurred by th....