TaxTMI 
TaxTMI 
2019 (4) TMI 1615
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....0857/CIT(A)-30)/2017-18 dated 28/02/2019 respectively (ld. CIT(A) in short) against the order of assessment passed u/s.143(3)of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 22/03/2016 & 15/12/2016 respectively by the ld. Assistant Commissioner of Income Tax - 19(2), Mumbai (hereinafter referred to as ld. AO). 2. The first effective common issue to be decided in these appeals is as to whether the ld CITA was justified in upholding the disallowance made u/s 35(1)(ii) of the Act in the sum of Rs. 26,25,000/- and Rs. 21,00,000/- for the Asst Years 2013-14 and 2014-15 respectively in the facts and circumstances of the case. The facts of Asst Year 2013-14 are taken up for adjudication and the decision rendered thereon would ....
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....ted out that no where in the statements recorded from the office bearers of SHGPH, the name of the assessee had been mentioned by them. It was also specifically pleaded that the very same office bearers had also stated that for certain donations received by SHGPH, no repayments / refunds were made in cash in lieu of donation cheques received. The assessee on the contrary furnished the following documents in support of its claim :- a) Details of donation paid to SHGPH containing the date of donation, mode of payment by account payee cheque, cheque number, bank details thereon, amount paid and PAN of assessee . b) Money receipt issued by SHGPH for donation received from assessee. c) Bank statement of the assessee fo....
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....ivities. j) List of members of Governing Body for the financial year 2012-13 together with the list of Advisory Committee members. k) Note on activities of SHGPH from the desk of Secretary of SHGPH together with necessary photographs as visual proof. l) Legal status of SHGPH containing various approvals obtained by SHGPH under Socieities Registration Act, Income Tax Act (Section 12A, 80G(5)(vi), 35(1)(ii), 10(23C) and TDS exemption ), Ministry of Home Affairs (FCRA registration), DSIR recognition (SIRO), Commission for PWD (PWD) and International System Book No. (ISBN). m) Organisation chart explaining the various functions of the Governing Body and the activities carried out by SHGPH under Research & Dev....
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.... us for both the years. 6. We have heard the rival submissions and perused the materials available on record. At the outset, we find that the ld AR placed on record the copy of the Notification No. 4/2010 (F.No. 203/64/2009/ITA-II) dated 28.1.2010 issued by CBDT to SHGPH recognizing them u/s 35(1)(ii) of the Act from Asst Year 2008-09 onwards. The ld AR also placed on record a copy of the Notification issued by CBDT dated 15.9.2016 withdrawing the recognition of approval granted u/s 35(1)(ii) of the Act to SHGPH with retrospective effect from 1.4.2007. Admittedly, the assessee had given donation to SHGPH on 6.3.2013 for Rs. 15,00,000/- ( 175% of 15 lacs is Rs. 26,25,000) and on 22.1.2014 for Rs. 12,00,000/- (175% of 12 lacs is Rs. 21,00,....
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.... 1.4.2006 had introduced an Explanation in Section 35 of the Act which reads as under:- Section 35(1)(ii) - Explanation The deduction, to which the assessee is entitled in respect of any sum paid to a research association, university, college or other institution to which clause (ii) or clause (iii) applies, shall not be denied merely on the ground that, subsequent to the payment of such sum by the assessee, the approval granted to the association, university, college or other institution referred to in clause (ii) or clause (iii) has been withdrawn. Hence the aforesaid provisions of the Act are very clear that the payer (the assessee herein) would not get affected if the recognition granted to the payee had been ....
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....vity. We also find that the ld AR had rightly placed reliance on the decision of the Hon'ble Jurisdictional High Court in the case of National Leather Cloth Manufacturing Co. vs Indian Council of Agricultural Research reported in (2000) 110 Taxman 511 (Bom) dated 7.10.1999 in the context of withdrawal of deduction u/s 35(1)(ii) of the Act due to withdrawal of recognition with retrospective effect . In any case, we find that the provisions of section 35(1)(ii) of the Act vide its Explanation reproduced hereinabove clearly proves that the donor (i.e assessee herein) cannot be affected due to subsequent withdrawal of recognition with retrospective effect. Respectfully following the aforesaid decisions and the provisions of the Act, we direct t....