TaxTMI 
TaxTMI 
2019 (5) TMI 2005
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....submitted that the first issue arises for consideration is assessment of capital gain. According to the Ld. D.R., the assessee claimed before the Assessing Officer deduction under Section 54EC of the Income-tax Act, 1961 (in short 'the Act') in respect of the investments said to be made in REC bonds on 27.03.2014 and on 08.04.2014. According to the Ld. D.R., the assessee claimed to have invested Rs.50,00,000/- on 27.03.2014 and another sum of Rs.50,00,000/- on 08.04.2014. In respect of the investment made on 27.03.2014, the Assessing Officer allowed the claim of the assessee. However, in respect of investment said to be made on 08.04.2014, the Assessing Officer found that it was beyond the period of six months from the date of trans....
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.....10.2013. The Ld.counsel invited out attention to page 73 of the paper-book where a copy of Share Transfer Form in Form 7B is available, and submitted that the date of transfer is referred as 8th October, 2013. The Ld.counsel has also invited our attention to page 75 of paper-book and submitted that the transfer of shares, in fact, effected on 31.10.2013. On a query from the Bench whether any resolution was passed by the company for transfer of shares, the Ld.counsel submitted that he could not clarify immediately. 4. We have considered the rival submissions on either side and perused the relevant material available on record. The assessee admittedly transferred the shares of M/s Ordian Health Care Global Pvt. Ltd. A sum of Rs.50,00,000/....
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....reafter decide the issue afresh in accordance with law, after giving a reasonable opportunity to the assessee. 6. The next issue arises for consideration is disallowance made by the Assessing Officer under Section 35(1)(ii) of the Act. 7. Shri S. Sridhar, the Ld.counsel for the assessee, submitted that the assessee has filed an application under Rule 27 of Income-Tax (Appellate Tribunal) Rules, 1963. The Ld.counsel submitted that the assessee claimed weighted deduction under Section 35(1)(ii) of the Act before the Assessing Officer in respect of the donation made to Shri Arvindo Institute of Applied Scientific Research Trust. According to the Ld. counsel, the assessee was misrepresented by the Trust saying that the approval granted fo....
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....eals) has rightly allowed the claim of the assessee. 8. On the contrary, Shri Sridhar Dora, the Ld. D.R. submitted that the Assessing Officer disallowed the claim of the assessee on the ground that the recipient Trust is not doing any research activity. According to the Ld. D.R., the Assessing Officer has also found on enquiry that no such Trust was functioning in the address given by the assessee. Referring to the CBDT circular dated 14th December, 2018, the Ld. D.R. found that Shri Arvindo Institute of Applied Scientific Research Trust was approved till 31.03.2006. Thereafter the said Trust was not recognized for the purpose of Section 35(1)(ii) of the Act. According to the Ld. D.R., a forged gazette notification is also available at t....
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.... of Revenue Central Board of Direct Taxes **** Room N0. 245A, North Block New Delhi, the 14th December, 2018 To All Principal Chief Commissioners of Income Tax All Director Generals of Income Tax (Investigation) Sir/Madam Subject: Information regarding bogus donation racket under section 35(1)(ii) of Income-tax Act, 1961-reg.- Kindly refer to the subject mentioned above. 2. In this connection, I am directed to state that Section 35(1)(ii) of the Income-tax Act,1961 ('Act') prescribes a weighted deduction @ 150% (175% before 01.04.2018) to a donor for any sum paid to an approved 'research association having as its sole object the undertaking of scientif....
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....wn by CIT (Exemption}, Mumbai for the period from A.Y 2012-13 to 2018-19 and circulated to the concerned field authorities expeditiously. 5. I am further directed to state that while handling investigations/ enquiries in these cases, the concerned Assessing Officer should examine the specific transactions related to the sum donated and cash trail should be clearly identified. Also, various provisions pertaining to enquiry and investigation under the Act should be effectively used and assessment orders should be passed under the monitoring of supervisory authorities. 6. This issues with approval of Member (IT&C), CBDT. Yours faithfully , (Rajarajeswari R.) Under Secretary (ITA.II) 11. In view o....