Case Law Details
Batuk Vithalabhai Donga Vs ITO (ITAT Rajkot)
If addition under section 80U is not made under section 68 or 69, then tax cannot be imposed under section 115BBE
Assessee has not challenged the additions made by the AO under section 80U and 80G of the Act, but has only challenged the computation of tax liability by the AO under section 115BBE of the Act. With respect to the first contention of the assessee that unless there is a specific finding that addition under section 80U is made under section 68 or 69 of the Act, then tax cannot be imposed under section 115BBE of the Act, we are in agreement with the contention of the assessee that once the AO has not invoked the provisions of section 68 to 69 of the Act, tax cannot be imposed under a deeming provisions of section 115BBE of the Act. In the instant case, the Assessing Officer made disallowance of deduction claimed u/s. 80U ( permanent disability) of the Act but did not do any discussion as to how the case of the assessee is covered by the provisions of section 68 or 69 of the Act so as as to compute tax liability u/s. 155BBE of the Act.
Disallowance with respect of incorrect claim of donation under section 80G cannot be made under section 69A
Disallowance with respect of incorrect claim of donation under section 80G cannot be made under section 69A of the Act, we observe that section 69A of the Act can be invoked only in case where the assessee is found to be the owner of any money, bullion, jewellery or other valuable article which is not recorded in the books of account and the assessee offers no explanation about the nature and source of acquisition of such money, bullion, jewellery or other valuable articles. Therefore, in our considered view, the AO has erred in facts and in law in invoking the provisions of section 69A in respect of incorrect claim of deduction under section 80G of the Act. Accordingly, since provisions of section 69A cannot be invoked in respect of disallowance made under section 80G of the Act, and without a specific finding that the assessee is in possession of any unexplained money, bullion, jewellery or other valuable article in his possession, accordingly, AO cannot compute tax liability under section 115BBE of the Act with respect to disallowance for incorrect claim under section 80G of the Act.
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