TaxTMI 
TaxTMI 
TaxTMI 
2022 (12) TMI 438
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....ceived from the DDIT (Inv), Mumbai, that M/s School of Human Genetics & Population Health is a bogus trust which has issued receipt to various entities, on the basis of these receipt the entities have claimed deduction u/s 35(1)(ii) of the Act. On perusal of same record, Assessing Officer observed that the assesse has claimed deduction u/s 35(1)(ii) equivalent to 175% of donation given u/s 35(1)(ii) to the aforementioned trust M/s Navjeevan Charitable trust. The assesse has made donation of Rs. 35 Lakh to the above mentioned trust, on the basis of this assesse has claimed, 175% being of Rs. 61,25,000/-. 4. In order to verify the above claim, the assessee was asked to submit the details and justify the claim u/s 35(1)(ii). In response assesse vide letter dated 22.2.2016, provided the details of donation given to the above mentioned trust along with receipt issued by that trust. The Assessing Officer observed that the cheque have been issued by the assesse firm on the various date but receipt Issued in Serial no. i.e., SL.No 1688 to 1692, the detail of Sl.No receipt is as under:- Sr.No Receipt No Date of RTGS Amount of Donation 1. 1688 09.03.2013 10,00,000/- 2. 1689 12.03....
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....n its appeal: - "1. On the fact and circumstances of the case and in law the Ld. CIT (A) erred in confirming the addition of Rs. 61,25,000/- by treating genuine donation claimed as a deduction by the appellant us 35(1)(ii) of the Act, as bogus, without appreciating the fact that the appellant has submitted all relevant documentary evidences to substantiate the genuineness of the impugned donation. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in confirming the addition made by Ld.Assessing Officer, without considering that the was neither provided any opportunity of cross examination of persons on whose statements reliance was placed nor provided any copy of such statements or any material or evidences on which reliance was placed, which is against the principles of natural justice. 3. The appellant craves to add, alter, classify, reclassify, delete or modify any of the above grounds of appeal and requests to consider each of the above grounds without prejudice to one another." 9. At the time of hearing, Ld. AR submitted that issue involved in this case is deletion of claim of the assessee on the donation made to scientific research i....
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....g decisions: * Motilal Dahyabhai Jhaveri & sons Vs. ACIT (ITA No. 3453/Mum/2018 dt. 24.4.2019) * Borsad Tobacco Co. Pvt. Ltd. Vs. DCIT (ITA No. 2040/Mum/2018 dt. 17.6.2019) * Kitchen Essentials Vs. ACIT (ITA No. 6672&6673/Mum/2013 dt. 15.1.2019) 10. Per contra, learned Departmental Representative relied upon the orders of the authorities below. 11. Upon careful consideration we note that identical issue was decided in favour of the assessee in the aforesaid decisions of the ITAT. We may refer to the decision in the case of Kitchen Essentials (supra) as under :- "We have heard the rival submissions and perused the material on record including the decisions cited by the Id. AR. The undisputed facts are that the assessee has made donations of Rs.50 lakhs to the "The School of Human Genetics and Population Health" and claimed deduction u/s.35(1)(ii) of the Act equal to Rs.87,50,000/- being 175% of the amount paid. A survey was conducted at the office premises of the school namely, "The School of Human Genetics and Population Health" u/s.133A of the Act on 27.01.2015 and it was observed by the survey team that this institute in connivance with donors, brokers and accommodati....
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.... of M/s. Herb/cure. We have reproduced Question no. 22 and 23 and answers given by Shri Swapan Ranjan Dasgupta, wherein he admits to provide accommodation entries in lieu of cash. This information we should say can be the tool to start an investigation when the assessee made the claim for weighted deduction. The general statement of Shri Swapan Ranjan Dasgupta against donation made the claim of assessee for deduction suspicious. However, when the AO investigated, Shri Swapan Ranjan Dasgupta has confirmed that M/s. Herb/cure was in receipt of the donation and it has not given any refund in cash, then the sole basis of disallowance of claim as a matter of fact disappeared. It should be remembered suspicion howsoever strong cannot take the place of evidence. The confirmation from Shri Swapan Ranjan Dasgupla fortifies the claim of the assessee for weighted deduction u/s. 35(1)(ii) of the Act. The sole basis of the addition/disallowance based on statement recorded on oath during survey cannot be allowed as held by Hon'ble Supreme Court in Kader Khan & sons (supra). Moreover, we note that if the AO was hell bent determined to disallow the claim of the assessee, then he should have gr....
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....he case before Hon'ble Apex Court, the power of cancellation of registration us 12A of the Act was conferred by the Act on the Id CIT w.e.f. 1.10.2004 and the Hon'ble Apex Court held that prior to that date , no cancellation of registration could happen. But in the instant case, there is absolutely no provision for withdrawal of recognition u/s 35(l)(ii) of the Act. Hence we hold that the withdrawal of recognition u/s 35(l)(ii) of the Act in the hands of the payee organizations would not affect the rights and interests of the assessee herein for claim of weighted deduction u/s 35(1)(H) of the Act." 16. In view of the aforesaid findings in the facts and circumstances of the case and respectfully following the various judicial precedents relied upon hereinabove, we direct the Id AO to grant deduction u/s 35(1 )(ii) of the Act, in the sum of Rs. 4,81,25,000/- for A. Y, 2013-14 and in the sum of Rs. 10,50,00,000/- for A. Y. 2014-15, as claimed by him under section 35(l)(ii) of the Act in respect of the amounts of donations made to two Institutions viz. 'Matrivani Institute Experimental Research & Education' and The School of Human Genetics and Population Health'. ....