Ideal Sheet Metal Stampings & Pressings Pvt. Ltd. Vs PCIT (ITAT Ahmedabad)
Bogus-donation alert ignored by AO: s.263 upheld where 80G claim to Aadhar Foundation went unexamined — ITAT Ahmedabad
ITAT Ahmedabad , Tribunal dismissed Assessee’s appeal & upheld revision u/s 263. Tribunal noted that Assessee claimed ₹6 lakh deduction u/s 80G on donation of ₹12 lakh to M/s Aadhar Foundation, an entity found in a search u/s 132 to be engaged in providing bogus donation entries. Despite this information being available during scrutiny, AO did not conduct any enquiry beyond accepting the receipt. Tribunal held that mere furnishing of donation receipt does not establish genuineness, & in light of specific adverse material, further verification was mandatory. Applying Explanation-2 to s.263, Tribunal held the assessment to be erroneous & prejudicial to Revenue for lack of enquiry, & followed co-ordinate bench ruling in Sakar Healthcare Ltd. involving the same donee. PCIT’s direction to redo assessment was upheld & Assessee’s appeal was dismissed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the assessee against the order of the Principal Commissioner of Income Tax, Ahmedabad-1 (in short “the PCIT”) dated 12.03.2025 for the Assessment Year (A.Y.) 2020-21 in respect of order passed under revisional jurisdiction under Section 263 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
