Assessee-company earned LTCG on sale of factory land. During relevant assessment year, assessee made donation to a trust and claimed weighted deduction under section 35(1)(ii) on said donation. Assessing Officer disallowed deduction on ground that there was discontinuation of business after sale of factory land. Assessee claimed that it continued its operation even after sale of factory land. CIT(A) affirmed the order of the AO. On appeal the Tribunal held that  no lease agreement or confirmation from buyer of factory land, had been submitted to substantiate claim of carrying on business at same premises. Since there was loss under head income from business or profession and assessee had discontinued its business after selling factory land, assessee could not claim deduction under section 35(1)(ii) from such business loss. Since assessee earned huge capital gains on sale of factory land and there was immediate and proximate nexus between impugned donation and capital gain, assessee was not entitled to claim deduction under section 35(1)(ii) from capital gain chargeable to tax under section 45. (AY. 2015-16)