Section 40A(2)(b) Disallowance not valid if AO not formed opinion on excessive or unreasonable deduction

ACIT Vs Praveen Sushil Kanda (ITAT Raipur) ACIT-1(1) vs. Praveen Sushil Kanda ITA No.188/RPR/2018 (Date of Order : 27.05.2022) relating to disallowance of bogus donation u/s.35(1)(ii) and disallowance out of salary to relatives u/s.40A(2)(b). Entire disallowances deleted. Disallowance of bogus donation u/s.35(1) SHG&PH as on the date of giving of donation by the assessee was having a valid approval granted under the Act. On a perusal of the aforesaid ‘Explanation’ to Sec. 35(1)(ii) of the Act, it can safely be gathered that a subsequent withdrawal of such approval cannot form a reason ...