Disallowance cannot be made in respect of donation made in an


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Disallowance cannot be made in respect of donation made in an institution based on valid CBDT approval: ITAT Mumbai

ITA 2649/Mum/2022


  1. Assessing Officer noticed that assessee has paid donation of Rs.1,10,00,000/- to School of Human Genetics and Population Health (SHGPH) and claimed deduction of Rs.1,92,50,000/- under section 35(1)(ii) of the Act being 175% of the donation amount.
  1. The Assessing Officer stated that information was received from the office of DGIT(Inv), Kolkata that survey action was carried out in the case of School of Human Genetics and Population Health and it was found that they were engaged in providing accommodation entries of bogus donation to the donors and they have accepted that they have refunded amount after deducting commission charges.
  1. Therefore, a show cause notice was issued to the assessee as to why the deduction under section 35(1)(ii) claimed by the assessee should not be disallowed.
  1. In response, the assessee filed his submission alongwith copy of receipt issued by School of Human Genetics and appreciating that the disallowance of donation on the basis of certain statements recorded of the Donee Trust without giving any opportunity to cross-examine the said persons is bad in law.
  1. However, Assessing Officer has disallowed the claim of deduction under section 35(1)(ii).

ITAT Mumbai held as below:

  1. It is noticed that CBDT vide its notification No.82/2016 F.No.2003/64/2009/ITA-II has withdrawn notification granting approval under section 35(1)(ii) on 15/09/2016 which showed that notification was valid at the time the donation was made.
  1. In this regard, we have perused the decision of ITAT, Mumbai Bench “H” in ITA No.1202/Mum/2022 order dated 15/09/2022 wherein it was held that at the time of making donation to School of Human Genetics and Population Health the concern was having valid approval granted under the Act by the CBDT.
  1. So the AO is directed to allow the claim of deduction.


The copy of the order is as under:


1678964458-ITA 2649-Mum-2022

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