TaxTMI 
TaxTMI 
2021 (12) TMI 987
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....facts of Assessment Year 2010-11. 3. The grounds of appeal raised by the assessee in ITA No. 2586/Ahd/2017 for Assessment Year 2010-11 are as under: 1.1 The order passed u/s. 250 on 12.10.2017 for A.Y. 2010-11 by CIT(A)-9, Abad upholding the disallowance deduction u/s. 35AC of Rs. 15 lakh made by AO is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. CIT{A) has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced by the appellant with regard to the impugned disallowance. 2.1 The Ld. CIT(A) has grievously erred in law and on facts in confirming that the donation of Rs. 15 lakhs to Navjeevan Charitable Trust u/s....
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....d were provided to the assessee on its request. A notice under section 143(2) of the Act was issued on 18.07.2016. The assessee raised objection in respect of reasons recorded which was disposed of by the Assessing Officer on 21.07.2016. The Assessing Officer observed that a search action under Section 132 of the Act was conducted by Investigation Unit, Mumbai on 27.10.2014 on M/s. Navjeevan Charitable Trust. The Trust was notified by the National Committee, Ministry of Finance, Government of India for the purpose of deduction under Section 35AC of the Act. The investigation into the financial transactions of the Trust showed that the Trust had received donations of about Rs. 80 crores in the past 5 financial years. The said amount was tran....
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.... 9. We have heard both the parties and perused all the relevant materials available on record. The assessee challenging the order of the CIT(A) thereby confirming the addition related to donation to Navjeevan Charitable Trust under Section 35AC of the Act. The assessee has made donation in the year 2009-10, 2010-11 & 2011-12. At the time of donation to Navjeevan Charitable Trust, the Trust was operational and there was no investigation in those Assessment Years. The Revenue at no point of time pointed out that the donation made by the assessee to SHG and PH were returned back to the assessee in the form of cash. In fact, all the records were before the Assessing Officer which stated that the assessee has made those donations as per the appr....
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.... account of alleged bogus donation to Herbicure Healthcare Bio-Herbal Research Foundation. 3. Brief facts of the case are that the assessee has filed return of income on 20.11.2014 declaring total income at Rs. 4,47,910/-. On scrutiny of the accounts, it revealed that the assessee-company has given donation to Herbicure Healthcare Bio-Herbal Research Foundation, Calcutta. A survey action was carried out at the premises of the donee wherein it revealed to the Revenue that this concern was misusing the benefit of notification issued by the Income Tax Department. It has been getting donations from various sources, and after deducting certain amount of commission, these donations were refunded in cash. On the basis of that survey repor....
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....or any specific reply deposing that such donation was not received, or if received the same was repaid in cash, has been brought on record. In the absence of such circumstances, donation given by the assessee to the donee, on which the assessee no mechanism to check the veracity, can be doubted, more particularly, when certificate to obtain donation has been cancelled after two years of the payment of donation. It is fact which has been unearthed subsequent to the donations. Therefore, there cannot be any disallowance on this issue. We allow this ground." 6. There is no disparity on the facts. On the basis same survey report, the genuineness of the donation has been doubted in the case of the assessee also. Therefore, the issue in ....
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....rded during survey operation cannot be used against the assessee until and unless it is cross verified in view of the judgment of Hon'ble Gujarat High Court in the case of CIT v/s Chartered Speed Pvt. Ltd. reported in Tax Appeal No. 126 of 2015 wherein it was held as under: "It is an undisputed position that the statement of the persons concerned which were recorded by the department, those persons were not made available for cross examination, may be for one reason or another inspite of the attempts made by the department. Therefore the Tribunal has rightly found that the statement of those persons cannot be read against the assessee." 7.3 Furthermore, the revenue has not brought any tangible material suggesting that ....