Prateek (Accounts Manager) (58 Points)
25 February 2016Amount of donation u/s 80G made by a company has been disallowed by the ITO as while assessment of trust to whom the donation was made it was found that it was accepting bogus donations. The company was unawre of the same when it made such donation.
Please advice with relevant case laws.
Prateek Dave
Sathish M
(Management Accountant)
(40581 Points)
Replied 25 February 2016
If an individual had made such a statement then it could have been error in judgement or lack of mechanism to trace out bonafide trusts. But, how can a company make such a costly mistake of making donations to a trust without knowing the credibility of the organization to which it was contributing money.
You may have to swim deep into the sea, to find out if there are any case laws which can come to your rescue.
Prateek
(Accounts Manager)
(58 Points)
Replied 25 February 2016
There should be something, your suggestions will be highly appreciated sir.
CAclubindia
