Simran Motors Pvt. Ltd. Vs DCIT (ITAT Pune)
CBDT List Alone Not Enough: Bogus Donation Allegation Needs Verification: ITAT Pune Remands s.35(1)(ii) Disallowance- ITAT Orders Fresh Look on ₹26.25 Lakh Donation Claim
The Pune Bench “B” of the ITAT, vide order dated 01.01.2026 in Simran Motors Pvt. Ltd. v. DCIT (ITA No. 1071/PUN/2025, AY 2013-14), set aside the orders of the lower authorities and remanded the matter to AO for fresh adjudication on the issue of disallowance of deduction claimed u/s 35(1)(ii) of the Income-tax Act.
The assessee, an authorised Maruti dealer, had claimed deduction of ₹26.25 lakh (175% of ₹15 lakh) towards donation made on 31.03.2013 to School of Genetics and Population Health, Kolkata, a research institution then approved for the purposes of s.35(1)(ii). The original assessment u/s 143(3) was completed earlier. Subsequently, reassessment proceedings were initiated on the basis of a CBDT office memorandum dated 21.09.2016, which listed the said institution as allegedly bogus. AO disallowed the entire claim and completed the reassessment ex-parte.
Before the Tribunal, the assessee contended that notices u/s 142(1) and the show-cause notice were actually served only on 02.11.2017, whereas the reassessment order had already been passed on 31.10.2017, depriving the assessee of an effective opportunity of being heard. This contention was supported by a notarised affidavit of the Director. It was also argued that no independent material had been brought on record by the AO to establish that the assessee’s donation was bogus, and that the disallowance was made solely on the basis of the subsequent CBDT list.
Tribunal noted that the CIT(A)/NFAC failed to examine these crucial factual submissions and had dismissed the appeal primarily by relying on the CBDT memorandum, without dealing with the assessee’s plea of non-service of notices and absence of adverse evidence. Holding that the assessee’s claim required proper factual verification, the ITAT set aside the impugned order and restored the matter to the file of the AO to adjudicate the issue afresh in accordance with law, after granting reasonable opportunity to the assessee.
Accordingly, the appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
