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2019 (1) TMI 1763 - AT - Income TaxDeduction u/s.35(1)(ii) - assessee has made donations to the “The School of Human Genetics and Population Health” - HELD THAT:- As observed by the survey team that this institute in connivance with donors, brokers and accommodation entry providers has indulged in a duvious scheme of tax evasion, under which bogus donations were received from donors and money used to be returned back to the donors in lieu of commission, even while the donor availed of deductions u/s.35(1)(ii) of the Act. The registration of the institution was cancelled by the Government of India with retrospective effect and it was held that the institution has misused the exemption. However, under similar facts and circumstances, various coordinate benches have taken the view that mere admission on the part of the office bearers of the body/trust, the assessee cannot be penalized and the amount of donations claimed by the assessee on account of payment to the said school cannot be denied. As decided in NARBHERAMVISHRAM GUA VERSUS DCIT, CENTRAL CIRCLE-4 (2) , KOLKATA [2018 (11) TMI 1314 - ITAT KOLKATA] 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 )(ii) - Decided in favour of assessee.
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