TaxTMI 
TaxTMI 
2012 (1) TMI 437
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....n account of difference in stock and investment in furniture. In the return of income filed for Assessment Year 2004-05, the assessee claimed deduction of Rs.40 lakhs on account of donation in cash to Rashtriya Vikas Party made on 31-03-2004. In order to verify the genuineness of the transaction, the AO has examined the assessee u/s131 of the IT Act and the said statement has been reproduced at Pages No. 1 to 12 of the assessment order. The AO has concluded as under: "On perusal of the statement of Rohitbhai, it is seen that the probability that assessee has claimed cash donation of Rs.40,00,000 to Rashtriya Vikas Party is Zero. Many questions regarding carrying of huge cash of Rs.40 lacs from Ahmedabad to Delhi remains unanswered. Not o single fuel bill has been produced by the assessee to prove filling of diesel in his car in which the alleged cash is stated to have been carried . Even bill of stay during the journey has not been produced. The assessee started from Ahmedabad on 29.3.2004 in the early hours in his own car for Delhi. According to him statement he returned on 2.4.2004. He was away from Ahmedabad for at least 4 days. Despite his stay outside he has not been ....
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.... donation given in cash. (1) Assessee gave even small donation by cheque therefore it is against the practice of assessee to pay huge donation by cash. Obviously, cheque payment can be made if the transaction has not taken place. By showing cash payment without any evidence except donation receipt it is clear that it is not genuine and proved with contemporariness. (2) If assessee's partner had traveled to Delhi by his car, he would have had fuel bills and hotel receipts for 3-4 days (from 28.3.04 to 2.3.04). In the absence of any such receipt, even the claim of trip to Delhi is not proved. (3) No person will travel by road to Delhi with Rs.40 lakhs to give donation. Even if donation is given on last day by cheque/draft, the same could be entitled for deduction. Hence there is no substance in assessee's claim of loosing deduction if paid by cheque. (4) The said party is not at all present in Gujarat where assessee's entire operations are there why will any one give distant unknown person huge sum unless the same is just an entry and not genuine. (5) Assessee was not able to give any detail about the said political party. How ....
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....see. His findings in Para 2.3 of the impugned order are reproduced as under: "2.3 I have carefully considered the contentions of the appellant as well as the assessment order. The above donation was made in cash on 31-03-04 to Rashtriya Vikas Party. The above donation has been claimed to have been made on 31-03-04. As per the appellant's version, the cash of Rs.40 lakhs was carried by car to Delhi and was delivered to Mr. M.P. Sharma, President of Rashtriya Vikas Party, a registered unrecognized party as per notification of Election Commission dated 22nd March, 2004. In above situation, the onus lies on the assessee to prove that his explanation is correct and substantiate it by the evidence. In this regard, the AO has examined the assessee and has brought out that appellant started from Ahmedabad on 29-03-04 and returned on 02-04-04. For these four days, the appellant has not been able to submit any independent evidence in the form of bills for filling of petrol in car or boarding or lodging at any place and the appellant has merely drawn a voucher of Rs.6,550/- as the expenses for the said tour. The appellant's contention in the statement that hotels, petrol pump....
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.... as the decision relied upon by the appellant i.e. Mehta Parikh & Co. Ltd. Vs. C.I.T. is concerned, the facts there were different as the part of the explanation of the assessee was accepted and part of the explanation was rejected. Also, the cash book of the assessee was accepted. So, the facts of the cited case are distinguishable. The facts of the case of Glassline Equipment Co. Ltd. Vs. C.I.T. are also distinguishable as in that case, a portion of the affidavit was ignored and finding of the Court was as under: "It was not open to the Revenue to ignore that portion of the affidavit wherein the capitalized expenses were stated to be incurred for setting up of the plant when it was accepting the other portion of the affidavit where certain items were expressly excluded; whole of the pre-commencement expenditure was includible in the actual cost of plant." The above findings are not applicable in the present case as the appellant has been thoroughly examined and various discrepancies were brought out by the AO in the explanation given by the appellant regarding the donation of Rs.40 lakhs. In vies of the above discussion, the addition of Rs.40 lacs is co....
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....he assessee in the previous year to a political party. The political party means a political party registered under the Representation of Peoples Act. It is not in dispute that Rastriya Vikas Party is a political party registered under the Representation of Peoples Act. The assessee has furnished statutory forms and notification of the Election Commission of India who have certified Rastriya Vikas Party in question to be recognized National Party. The assessee filed receipt of Rs.40 lacs which was paid as donation/contribution to Rastriya Vikas Party which is also assessed to tax and filed return of income for assessment year under appeal. Affidavit of Shri M. P. Sharma of Rastriya Vikas Party is also filed in which they have confirmed to have received contribution of Rs.40 lacs from the assessee. Such donation was reported to the Election Commission of India. The AO in the case of Rastriya Vikas Party issued query letter to the assessee calling for information of payment of donation to them and such letter (PB-54) was issued with the approval of CCIT, Faridabad and the assessee also confirmed to the AO of Rastriya Vikas Party regarding payment of donation to them. The assessee not....