ITAT Ahmedabad upholds PCIT’s Section 263 Action on Bogus donation racket

Sakar Healthcare Ltd. Vs PCIT (ITAT Ahmedabad) Assessee had claimed deduction u/s 80G for donations made to M/s. Aadhar Foundation – ₹14 lakhs in A.Y. 2020-21 & ₹28.50 lakhs in A.Y. 2021-22. AO, after scrutiny u/s 143(3), allowed the claims. Subsequently, PCIT invoked powers u/s 263, holding that Aadhar Foundation was found in search u/s 132 (conducted on 02.02.2021) to be engaged in a bogus donation racket, wherein donations were routed back to donors after charging commission. As AO failed to disallow such claim despite availability of adverse information, PCIT held the assessment ...