TaxTMI 
TaxTMI 
2020 (2) TMI 1413
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.... of Income tax (Appeals) has confirmed the disallowance of donations given by the appellant company to a society which was approved and notified by the CBDT on 14.03.2008, the appellant company had given donation to the society on 20.01.2014 and the CBDT has cancelled the approval vide notification dated 06.09.2016. The donation given by appellant company was much before the withdrawal notification by the government. 4. The assessing officer has disallowed the claim on the ground that the approval granted to the society was cancelled by the CBDT with retrospective effect and hence any donation given to such society cannot be considered has donation given U/s. 35(1)(ii). The commissioner of income tax (Appeals) has affirmed the disallowance that the action of the assessing officer to disallow the deduction on the ground that the approval granted was retrospectively withdrawn. The learned Commissioner of Income tax (Appeals) has affirmed the action of the assessing officer without looking into the specific provisions contained in explanation to proviso U/s. 35(1)(ii) providing that the deduction to which assessee is entitled in respect of any sum paid to research association....
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....t dt. 13.12.2018. Aggrieved by the order, the assessee has filed an appeal with the CIT(Appeals). Whereas the CIT(Appeals), considering the findings of the Assessing Officer and submissions of the assessee concurred with the action of the Assessing Officer and dismissed the appeal. Aggrieved by the CIT(Appeals) order, the assessee has filed an appeal with the Tribunal. 4. At the time of hearing, the learned Authorized Representative submitted that the CIT(Appeals) has erred in confirming the action of the Assessing Officer irrespective of the fact that subsequent withdrawal of approval to the recipient shall not make the assessee ineligible for deduction under Section 35(1) of the Act, further emphasized that the assessee has paid Rs. 25 lakhs by cheque dt. 28.10.2014. Whereas, the withdrawal of approval by the CBDT is vide Notification dt. 6.9.2016 and relied on the co-ordinate Bench decision of the Tribunal dt. 8.11.2019 in assessee's own case for the Assessment Year 2014-15 and prayed for allowing the appeal. Contra, the learned Departmental Representative supported the order of the CIT(Appeals). 5. We heard the rival contentions and perused the material on record. The....
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....ubject to such conditions as may be prescribed; and (B) such association, university, college or other institution is specified as such, by notification in the Official Gazette, by the Central Government: Provided further that where any sum is paid to such association, university, college or other institution in a previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, the deduction under this clause shall be equal to the sum so paid; (iia) any sum paid to a company to be used by it for scientific research: Provided that such company- (A) is registered in India, (B) has as its main object the scientific research and development, (C) is, for the purposes of this clause, for the time being approved by the prescribed authority in the prescribed manner, and (D) fulfils such other conditions as may be prescribed; (iii) any sum paid to a research association which has as its object the undertaking of research in social science or statistical research or to a university, college or other institution to be used for research in social science or statistical research: ....
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....d in the notification: Provided also that where an application under the first proviso is made on or after the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President, every notification under clause (ii) or clause (iii) shall be issued or an order rejecting the application shall be passed within the period of twelve months from the end of the month in which such application was received by the Central Government." 6. As per explanation below section 35(1)(iii), it is specified that deduction should not be denied to the donor 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. At this juncture, we feel it proper to reproduce para no. 2.1 of the assessment order as per which this disallowance was made by the AO. This para reads as under. "2.1 Disallowance The assessee has paid Rs. 15,00,000/- vide Donation Cheque No. 122172 dated: 18.01.2014 of Bank of India same was acknowledge by M/s. Herbicure Healthcare Boi-Herbal Research Foundation vid....