TaxTMI 
TaxTMI 
2017 (9) TMI 1637
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....f the information received from the office of the Pr. Director of Income-tax (Inv.), Kolkata-69 which information was based on a survey operation carried out u/s. 133A of the Act at the office premises of M/s. Herbicure on 27.01.2015. During the survey operation statement of Shri Swapan Ranjan Dasgupta (Founder Director) of M/s. Herbicure was recorded on oath wherein he has admitted to engage in providing accommodation entries. Based on the statement of Shri Swapan Ranjan Dasgupta, the AO was of the opinion that the claim made by the assessee was bogus and, therefore, he did not allow the claim and added the deduction claimed of Rs. 26,28,500/- to the returned income of assessee at Rs. 7,53,440/- and assessed the total income at Rs. 33,81,940/-. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A), who was pleased to confirm the same. Aggrieved by the aforesaid decision of the Ld. CIT(A), the assessee is before us. 5. We have heard rival submissions and gone through facts and circumstances of the case. We note that the assessee is a partnership firm engaged in the business of medical equipments. Due to the recessionary trend in the business of medical equipment, the....
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....de order dated 13.08.2012 in Memo No. 14/444/2006TUV by the Ministry of Science & Technology, Govt. of India. FCRA registration renewal of 80G which was renewed vide certificate of exemption u/s. 80G(5)(vi) of the Act vide No. DIT(E)/438/8E/155/04-05 dated 18.08.2009 and PAN No. has been stated. We also note that the M/s. Herbicure has stated its project in brief which is reproduced as under: "The vision of Herbicure Healthcare Bio-Herbal Research Foundation is to meet the scientific research needs in Life Science and to constantly strive for excellence and global leadership in the field of new drug discovery from natural resources for the purpose of prevention and management of burden of diseases at affordable cost and also to provide later healthcare services, education and training on scientific research for the welfare of the society." 7. We also note that Smt. Sujata Ghosh Dastider has stated in her letter to AO dated 27.01.2016 that she is Director of M/s. Herbicure and that she was ex-Emeritus Professor of Jadavpur University in Microbiology and now looks after the research work in M/s. Herbicure and that based on her contribution towards scientific research on microbi....
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....as incorporated in the year 2003 u/s 25 of the Companies Act, 1956 which was recognized in 2006-07 as a scientific and industrial research organization (SIRO) by the Ministry of Science & Technology, Govt. of India and subsequently we became a Gazette notified company u/s 35(1)(ii) of the I. T. Act, 1961 in March, 2008. Despite of our sincere, honest and best intention we failed to procure any genuine donations till 2010-11. The situation was becoming bad to worse due to non-availability of funds for not agreeing to the prevalent practice in the donation market. The situation became so critical for us to survive and carry on our mission to do the work for the larger interest of the ailing population we had no other alternative but to become the victim of the circumstances against our will and principle. Subsequently, I was approached by one Mr Kishan Bhawasingka with the proposal to adopt the prevalent practice of scientific and research organization of giving accommodation entries on commission to different beneficiaries in the garb of donation receipts to be finally given back to them in the form of cash or chque. Since we were facing severe financial crisis and the genuine do....
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....dation entry. Subsequently, a sanction letter is received from the donor reflecting the amount of donation and mode of payment. The particulars are then verified with the amount credited in our bank accounts after which an exemption u/s. 35(1)(ii) of the I. T. At, 1961 which qualifies him/her to claim 'one and three fourth' of the said donation as tax exempt u/s. 35(1)(ii) of the I. T. Act, 1961." 9. We note that the sole basis for making the addition is on the basis of the statement recorded on oath during survey at M/s. Herbicure of Shri Swapan Ranjan Dasgupta, other than the said statement there is no other evidence to show that the assessee has received back the donation as suggested in his general statement about providing accommodation entry by Shri Swapan Ranjan Dasgupta. We also note that the said Shri Swapan Ranjan Dasgupta has not stated anywhere that the assessee indulged in bogus donation or that the amount donated to it (M/s. Herbicure) was given back to the assessee after deducting the commission. We note that the statement recorded on oath during survey cannot be the sole basis for making the disallowance as decided by the Hon'ble Supreme Court in CIT Vs. S. Kader....
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....he partners replied that they were not aware of the survey, however, they added that after their visit of the two centers they were on a bonafide belief that M/s. Herbicure was a competent institute and based on the recommendation of the Cardiologist Dr. Bhuban Chakrabrty they made donation to the said concern. We also note that the AO issued summons to Shri Swapan Ranjan Dasgupta who did not appear for cross examination due to ill health but the said Shri Dasgupta confirmed the donations made by the assessee firm to M/s. Herbicure in writing to the AO and clearly stated that no money was refunded back to assessee firm, which fact has been reproduced by the AO at page 7 of his order as under: "Shri Swapan Ranjan Dasgupta, Director of M/s Herbicure Healthcare Bio-Herbal Research Foundation had filed a letter on 28/01/2016 stating "Referring to the above and your comments on my reply dated 22.01.2016, I would further request your good office to elaborate the financial years in question to enable our Accounts Deptt for verification and submission. However, we apparently observe from our records that following donations were received by us from M/s. Saimed Innovation, the assesse....