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2017 (2) TMI 447 - AT - Income TaxReopening of assessment - Mismatch of TDS certificates - Held that:- We find from the record that while filing the return of income, the assessee has not claimed deduction under section 35(1)(ii) in the return of income, in which the columns were left blank. Only in the memo of computation (refer page 42), the assessee mentioned that it has claimed deduction under section 35 at 100 per cent. on weighted deduction. Only during the assessment proceedings, the assessee made submission before the Assessing Officer to treat the above contribution as deduction under section 37. Considering the above, the submission of the assessee is inconsistent. Mismatch of TDS certificates prompted the Assessing Officer to consider the reopening of the assessment. This is indeed a proper reason to believe at that point of time that income escaped from tax. In our considered view, the Assessing Officer has proper material at that point of time to consider reopening of the assessment. We do not find any mistake in reopening the assessment. - Decided against revenue Disallowance of deduction under section 37 - contribution to M/s. Institute of Life Sciences - Held that:- In the present case, the assessee has made the contribution but there is nothing on the record to show that the benefit has passed on to the assessee or to its employees by making such contribution. Since the assessee is not running any business and not brought on record to show that it has benefitted by making such contribution. Merely making contribution to other institute which has similar object does not mean any benefit to the assessee. In our considered view, to claim of deduction under section 37(1), there has to be an expenditure, which is incurred for the benefit of business in the same year or for the future benefit. In the given case, nothing was brought on record to highlight, how the assessee has got the benefit either in this year or in the future or any benefit to the overall benefit to the organisation as a whole. There has to be some benefit directly or indirectly to the organisation. In our considered view, the assessee has made the contribution to M/s. Institute of Life Sciences without any reciprocal benefit to its business or to its employees even though the objectives are similar, it cannot claim any deduction under section 37(1) of the Act. Hence, the grounds raised by the assessee are dismissed.
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