S. 263 Valid if AO fails to enquire business exigency of donations

Brief of the Case ITAT Pune held in the case Shri M.D. Wadhokar vs. CIT that it is an admitted fact that neither any details of donations were called for by the AO nor the assessee has given the breakup of such details during the course of assessment proceedings. Only during section 263 proceedings, the assessee has stated that an amount of Rs.31 lakhs has been paid to M/s. Jnana Prabodhini Samshodhan Sanstha, Pune, an institution notified u/s.35(1)(iii) and the balance amounts were made out of business exigencies. Whether the part of the donation is for business exigency or not has not at all...