This article provides an in-depth review of the legal proceedings in ITA No.5093/DEL/2019, involving Sunflower Trust’s challenge against the denial of deductions for the assessment year 2014-15.
Sunflower Trust, established as a public charitable trust in 1972, engaged in philanthropic activities, faced issues with the denial of deductions under Chapter VI-A/Section 80GGA read with Section 35AC for the assessment year 2014-15. The deductions were initially denied by the CPC, Bangalore, leading to a significant tax demand which was contested by the trust.
The trust’s appeal highlighted the consistent allowance of similar deductions in previous and subsequent years, arguing for a mistake or oversight in processing for the said year. The tribunal reviewed precedents and submissions, ultimately directing the allowance of the deduction, correcting what was deemed a computational error by the lower authorities.
The tribunal’s decision not only rectified an immediate fiscal grievance for Sunflower Trust but also set a precedent for how charitable trusts claiming deductions under complex sections of tax law are to be treated, ensuring consistency and fairness in tax assessments. This case serves as a crucial reference for other trusts in similar situations, highlighting the importance of meticulous record-keeping and knowledgeable legal representation in disputes over tax deductions.
Tribunal Decides on Deduction Denial under Chapter VI-A for Sunflower Trust, AY 2014-15
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