PARAG DAVE,AHMEDABAD vs. THE DCIT, CIRCLE-3(1)(1) PREVIOUSLY THE DCIT, CIRCLE-3(3), AHMEDABAD
Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD
Before: DR. BRR KUMAR & Ms. SUCHITRA KAMBLEAssessment Year: 2017-18
PER SUCHITRA KAMBLE, JUDICIAL MEMBER:
This appeal is filed by the Assessee against order dated 25.10.2023, passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment
Year 2017-18. 2. The assessee has raised the following grounds of appeal:
“1. The CIT(A) erred both in law and on facts in rejecting the claim of deduction u/s.35(1)(ii) of Rs.54,25,000.00 in respect of amount of Rs.31,00,000.00 contributed by the appellant through RTGS merely on irrelevant and untenable grounds ignoring the documents received by the appellant produced before him. On the facts and in the circumstances of the case and the legal inference, the disallowance is patently wrong. It be so held now and deduction be granted as claimed.
2. The CIT(A) erred both in law and on facts in not appreciating that the appellant submitted various documents like copies of certificates associated with Arvindo Institute of Applied Scientific Research Trust
Assessment Year: 2017-18
4. The CIT(A) erred in law and on facts in making various observations in the assessment order which are irrelevant and untenable when appellant had cooperated with AO by furnishing all the evidences and answers on facts which ought to be considered which AO has failed to consider. It be so held now and deduction rejected for no fault of appellant be allowed as claimed.”
The assessee is engaged in the business of Soil Testing, Building Material Testing like cement, tiles, bricks, steel etc. and land survey work and non-destructive testing works. The return of income was filed by the assessee on 26.09.2017 declaring total income of Rs.56,55,070/-. The case was selected for complete scrutiny and notice under Section 143(2) of the Income Tax Act, 1961 was sent on 13.08.2018. The Assessing Officer, after perusing the statement of total income and Annexure-4 of Column No.19 in the Form No.3CB in respect of amount admissible under Section 35(i)(ii) of the Act observed that the assessee claimed deduction under Section 35(1)(ii) of the Act of Rs.54,25,000/- being 175% of Rs.31,00,000/- for donation given to Shri Arvindo Institute of Applied Scientific Research Trust. After issuing show cause notice, the assessee did not respond and hence the Assessing Officer made disallowance of Rs.54,25,000/- which was claimed under Section 35(1)(ii) of the Act by the assessee.
Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. Assessment Year: 2017-18 Trust was approved till 31.03.2006 which was reflected in the documents which was reproduced in the Assessment Order. The assessee has totally ignored this fact and has made donation which is 175% more solely to obtain weighted deduction.
We have heard the Ld. AR and perused all the relevant material available on record. The said Arvindo Institute of Applied Scientific Research Trust was earlier approved under Section 35(1)(ii) of the Act which expired on 31.03.2006 and, thereafter, this entity being not recognised for purpose of Section 35(1)(ii) of the Act, is not eligible to raise donations for undertaking Scientific Research. The assessee, at no point of time, can state that he was not aware about this position as the assessee is a Science Graduate conversant with financial updates and is very well aware about the business and the approval of the CBDT for this particular Institute up till 2006. The Assessment Year: 2017-18 PBN/* Copies to: (1) The appellant (2) The respondent
(3)
CIT
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CIT(A)
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Departmental Representative
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Guard File
By order