No Material To Prove Cheque Paid For Donation Has Been Ploughed Back By Way Of Cash: ITAT

In a recent case, ITAT ruled that a donation paid by cheque can't be disallowed merely for being in cash. The assessee claimed the donation, supported by the recipient's acknowledgement. The Revenue argued against the deduction citing the cheque's encashment into cash mode. However, ITAT noted the taxpayer's due diligence in verifying the donee's identity and upheld the deduction. The decision highlights the importance of substance over form in verifying donations for tax purposes