TaxTMI 
TaxTMI 
2026 (9) TMI 918
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....2025. The impugned order emanated from the order of National EITA Assessment Centre, Delhi (for brevity 'Ld. AO'), order passed under Section 143(3) r.w.s. 143(3A) r.w.s. 143(3B) of the Act, date of order 15.02.2021. 2. The assessee has taken the following grounds: "I. DENIAL OF DEDUCTION UNDER SECTION 57(iii) OF THE ACT OF Rs. 65,00,000/-: 1.1 On the facts and in the 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. 65,00,000/-under Section 57(iii) of the Act for the donations of Rs. 65,00,000/-paid by the appellant to the eligible trusts and Institutions as "Expenditure on....
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....A) and 143(3B) of the Act on 15.02.2021 determining total income at Rs. 4,40,85,940/-. The principal dispute relates to denial of deduction of Rs. 65,00,000/- under Section 57(iii) of the Act in respect of donations made to eligible charitable trusts/institutions. The alternative claim under Section 80G was also not allowed. 5. During the relevant year, the assessee earned interest income of Rs. 68,67,616/- and dividend income of Rs. 3,72,18,323/-. The assessee claimed that an amount of Rs. 65,00,000/- was applied by way of donations to various charitable trusts/institutions having valid exemption certificates and carrying on similar charitable objects. The Ld. AO disallowed the claim under Section 57(iii) on the ground that there was no....
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....therein from The relevant paragraph of the said order is reproduced as below: "We observe that as per the decision of Hon'ble Delhi High Court as supra all expenses incurred by the assessee for charitable object for which it was established are allowable as deduction u/s 57(iii) of the Act. The Id. D.R relied on the decision of ITAT, Pune in the case of Poona Club Ltd. Vs. ACIT (2018) 90 taxman.com 422 (Pune). We find that the fact of that case is distinguishable from the fact of the case of the assessee as in the case of the assessee they have not claimed any benefit u/s 11 and 12 of the Act and the expenses were incurred by the assessee for the charitable object for which it was established. The Hon'ble Delhi High Court i....
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....xpenditure to be laid out or expended wholly and exclusively for the purpose of making or earning the income. According to the revenue, the donations made to various charitable institutions did not have any direct nexus with the interest income earned from bank deposits and, therefore, the conditions prescribed under Section 57(iii) were not satisfied. The Ld. DR accordingly supported the disallowance made by the Ld. AO and sustained by the Ld. CIT(A). The assessment order records this precise basis for the disallowance. 9. We have heard the rival submissions and perused the material available on record. The limited issue for our consideration is whether the donation of Rs. 65,00,000/- made by the assessee in furtherance of its charitabl....