Kapadia Marketing Inc Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that weighted deduction under section 35(1)(ii) of the Income Tax Act rightly disallowed as donation is given to Arvindo Institute of Applied Scientific Research Trust who doesn’t have valid registration. Accordingly, appeal of assessee dismissed.
Facts- During the impugned assessment year, the assessee had claimed a sum of Rs. 1,05,00,000/- as deduction u/s. 35(1)(ii) of the Act, being 150% of deduction made to specified scientific research institution. On perusal of the records, AO observed that the assessee had claimed to have donated a sum of Rs. 70,00,000/- to Shri Arvindo Institute of Applied Science and Research Institute Trust. AO observed that the said trust was found to have indulged in large scale scam of issuing bogus donation received for the purpose of claiming weighted deduction under Section 35(1)(ii) of the Act and many assessee’s had benefitted by claiming such bogus donation through this scam. Thus, AO denied weighted deduction of Rs. 1,05,00,000/- claimed by the assessee.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- In the case of C K Zipper Private Limited vs. ACIT in ITA No. 4/Ahd/2023, the ITAT Ahmedabad also disallowed the claim of weighted donation for A.Y. 2016-17 under Section 35(1)(ii) of the Act to Arvindo Institute of Applied Science and Research Institute on the ground that at the time of grant of registration, it did not have a valid registration.
