TMI Blog2022 (3) TMI 1451X X X X Extracts X X X X X X X X Extracts X X X X ..... against the order of the Commissioner of Income Tax (Appeals), (NFAC) Delhi passed u/s 143(3) r.w.s 147 and 250 of the Act. The assessee has raised the following grounds of appeal. 1. On the facts and in the circumstances of the case and in law the Ld. CIT (A) erred in not considering that the assumption of jurisdiction by the Ld. Assessing Officer is bad in law as the conditions laid down under the Act for initiating reassessment proceeding u/s 147 of the Act have not been fulfilled. 2. On the fact and circumstances of the case and in law the Ld. CIT (A) erred in confirming the addition of Rs. 52,50,000/- by treating genuine donation claimed as deduction by the appellant u/s 35(l)(ii), as bogus, without appreciating the fact that the appellant has submitted all relevant documentary evidences to substantiate the genuineness of the impugned donation. 3. 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 appellant was neither provided any opportunity of cross examination of persons on whose statements reliance was placed nor provided any copy of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the grounds of appeal in respect of claim of deduction u/sec35(1)(ii) of the Act and the other grounds of appeal are treated as not pressed and are left open. The Ld.AR submitted that the assessee has made donation genuinely and obtained the receipts and the transaction satisfied the conditions required for claiming the exemption/deduction. The Ld.AR supported the submissions with the donation receipts, certificate of registration u/sec 12AA of the Act, government notification in paper book and judicial decisions and prayed for allowing the appeal. Contra, the Ld. DR submitted that the assessee has given donations to bogus institution and the recognition was cancelled and supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. The sole crux of the disputed issue envisaged by the Ld. AR that the donation is genuine and duly supported with the facts and the material information to substantiate the eligibility of claim of deduction u/s 35(1)(iii) of the Act. The Ld.AR submissions are realistic and duly supported by the evidences. We find the Hon ble Tribunal in the case of M/s Sopariwala Exports Pvt Ltd vs. DCIT in ITA No. 2039/Mum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.42 43/Kol/2018, order dated 27.07.2018, the Kolkata Bench of the Tribunal under similar circumstances and facts has held as under :- 13 we have given a careful consideration to the rival submissions and perused the materials available on record, we note that the assesses has challenged disallowance of weighted deduction of Rs.4,81,25,0007- for A.Y. 2013-14 and disallowance of weighted deduction of Rs.10,50,00,000/-, for A.Y. 2014-15, 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' (hereinafter referred to as 'Matrivani') and 'The School of Human Genetics and Population Health' (hereinafter referred to as 'SHG'). The Assessee Firm in A.Y. 2014-15, made donation of Rs,2,00,00,000/ to Matrivani and Rs,4,00,00,000/ to SHG and claimed weighted deduction Assessing Officer. We note that not providing the opportunity of crossexamination is against the principle of natural justice and for that we rely of-the judgment of Hon'ble Delhi High Court in the case of CIT vs. Dharam Pal Prern Chand Ltd. [2007] 295 ITR 105, 108 (de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Human Genetics and Population Health', therefore these institutions are not entitled to claim benefit under section 35 (1) (ii) of the Act. We note 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 assesses herein for claim of weighted deduction u/s 35(1 )(ii) of the Act, for that we rely on the judgment of the Coordinate Bench, Kolkata, in the case of M/s Maco Corporation India (P) Ltd, ITA No.l6/Kol/2017, for Assessment Year 2013-14, wherein it was held as follows: 29. All the three High Courts after examining the issue, in the light of the object of Section 12A of the Act and Section 21 of the General Clauses Act held that the order of the CIT passed under Section 12A is quasi judicial in nature. Second, there was no express provision in the Act vesting the CIT with power of cancellation of registration fill 01.10.2004; and lastly. Section 21 of the General Clauses Act has no application to the order passed by the CIT under Section 12A because the order is quasi judicial in nature and it is for all these reasons the CIT had no jurisdiction to cancel the registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(ii) of the Act cannot be denied to the assessee. Accordingly, we direct the AO to grant deduction u/s.35(1 )(ii) of the Act. Appeal of the assessee for the assessment year 2013-2014 (ITA No.6672/Mum/2017) is hereby allowed. 12. We note that facts in the present case are identical. The withdrawal of the approval to the payee has taken place subsequent to the payment by the assessee. The assessee s case duly follows under section 35(1)(ii) of the Act which read as under :- Section 35(1)(ii) : an amount equal to one and one half times of any sum paid to a research association which has as its object the undertaking of scientific research or to a university, college or other institution to be used for scientific research : Provided that such association, university, college or other institution for the purposes of this clause- (A) is for the time being approved, in accordance with the guidelines, in the manner and subject 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
