Case Law Details
Joshi Technologies International Inc Vs CIT (IT & TP) (ITAT Ahmedabad)
The case of Joshi Technologies International Inc Vs CIT revolves around the allowance of weighted deduction on donations under Section 35(1)(ii) of the Income Tax Act. The dispute arises from the expiration of approval for receiving donations by the recipient institute, M/s. Shri Arvindo Institute of Applied Scientific Research Trust, as highlighted by the CBDT in 2018.
Detailed Analysis: The appeal filed by Joshi Technologies International Inc contests the revisionary order passed by the Commissioner of Income Tax (IT & TP), Ahmedabad, under Section 263 of the Income Tax Act, 1961. The crux of the matter lies in the incorrect allowance of weighted deduction on donations made to the aforementioned institute. Despite claims and submissions by the assessee regarding the validity of their claim, subsequent investigations revealed that the institute’s approval had expired in 2006.
The argument put forth by the assessee, supported by documents provided by the institute, was that they had a genuine belief in the eligibility of their claim. However, the CBDT advisory issued in 2018 highlighted the fraudulent activities of the institute in accepting donations after the expiration of its approval.
The court’s decision upheld the revisionary order, emphasizing that even if the claim was made in good faith, it was still ineligible under the law. The assessment order allowing the deduction was deemed erroneous, leading to the dismissal of the assessee’s appeal.
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