Partnership firm for the financial year 2010-11, donation paid to an institution Rs.1,20,000, debited to Profit & Loss account, again it is disallowed under income tax. and such donation is eligible for deduction under chapter.vi, u/s 80g(5)(vi). i.e , Rs.60,000.
As computed u/s-143(1) of income tax, the dept doesn't taken into consideration the deduction of Rs.60,000 under chapter vi, for which partnership firm have to pay demand.
Please any one can say why it dept doesn't taken into consideration the deduction of Rs.60,000.