Deduction for donation to approved research institution upheld where no material showed any accommodation-entry or bogus donation linkage.

A deduction under section 35(1)(ii) for donation to an approved scientific research institution was upheld where the assessee's payment was found genuine and the donee held the relevant registration. The Tribunal found no material linking the donation to any accommodation-entry or bogus-donation arrangement, and it treated the jurisdictional High Court precedent allowing deduction for the same institution as controlling. The contrary Revenue reliance was distinguished on facts, and the disallowance was deleted.

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Issues: Whether the assessee was entitled to deduction under section 35(1)(ii) of the Income-tax Act, 1961 in respect of donation made to Herbicure Health Care Bio Research Foundation, or whether the donation was bogus and the deduction liable to be disallowed.

Analysis: The donation was made to a research organisation that held the relevant registration, and the Tribunal found no material showing that the donee had admitted to receiving accommodation entries or bogus donations in the same manner as in the relied-upon adverse case. The Tribunal treated the jurisdictional High Court decision allowing deduction on donation to the same institution as governing the controversy and distinguished the contrary decision relied on by the Revenue on facts. On that basis, the Tribunal held that the assessee had made a genuine donation and was entitled to the deduction claimed under section 35(1)(ii).

Conclusion: The disallowance was deleted and the assessee's claim for deduction under section 35(1)(ii) was allowed.

Ratio Decidendi: A deduction for donation to an approved scientific research institution cannot be disallowed merely on general allegations of bogus donations when no material links the assessee's transaction to any proven accommodation-entry arrangement and the governing jurisdictional precedent supports allowance.

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