Per Shri N. Barathvaja Sankar, A.M. - (1.) THIS is an appeal preferred by the assessee Ws. Parkside Holdings Limited, Coonoor, for the assessment year 1992-93 against the appellate order dated 19-12-1995 of the Commissioner (Appeals), Coimbatore.
(2.) Briefly stated, the facts of the case are that while framing the assessment under section 143(3) of the Act the assessing officer found that the assessee had paid the following amounts as donation : judgement_12585_tlit0_20010.htm It is found in the assessment order that it was not mentioned therein in the receipts the mode of payments, whether cash or by cheque. If it was paid through cheques the date of realisation was not verifiable, since the assessee had not produced any evidence regarding the realisation and if it was realised in the subsequent year it was allowable in that year only, according to the assessing officer. In the absence of these details the deduction under section 80G was not allowed by the assessing officer. Aggrieved by this action of the assessing officer the assessee appealed to the first appellate authority. Before the first appellate authority the learned representative for the assessee submitted that the two payments had been made through cheques dated 31-3-1992 and these cheques had been realised on 11-4-1992. It was further argued that since the amount had already been paid by cheque on 31-3-1992 and the receipts were also dated 31-3-1992 and further since the cheques had also been realised within a reasonable period of two weeks, the payments should be considered as having been made in the relevant accounting year. However, the learned first appellate authority, on verification of the relevant bank account, found that the realisation of Rs. 12 lakhs on 11-4-1992 was out of a deposit of Rs. 12 lakhs made into the account on the same date. As there was no adequate funds in the account on 31-3-1992 to clear the cheques for Rs. 12 lakhs, it could not be said that the payments had already been made during the year, ending 31-3-1992, according to the learned Commissioner (Appeals). Thus he upheld the action of the assessing officer by confirming the disallowance made by the assessing officer.
(3.) THE assessee is still aggrieved and is on second appeal before us on this issue with the following grounds of appeal : "1. THE Commissioner (Appeals) erred in confirming the disallowance of donation to the extent of Rs. 12 lakhs. He ought to have observed that the cheques having been handed over on 31-3-1992 and the same having been encashed by the Donee on 11-4-1992, the date of payment should be 31-3-1992, being the date of receipt by the donee. In any case, he ought to have deleted the disallowance on the basis of the fact that the company had made arrangements to transfer funds into the bank account from which the cheques were issued." Before us the learned counsel for the assessee Ms. B. Mala, Chartered Accountant, placed on record a small compilation consisting of 23 pages comprising therein the following materials: 1. Copy of accounts. 2. Copy of cheques dated 31-3-1.992 issued to the trusts. 3. Copy of receipts from charitable trusts dated 31-3-1992. 4. Extract from Finance Bill, 1976.;