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2019 (5) TMI 1323 - AT - Income TaxDisallowance of deduction claimed u/s 35(1)(ii) - retrospective withdrawal of approval granted by the prescribed authority - Donation to the research Institute - HELD THAT:- If at the time of giving the donation to the research Institute it had a valid registration granted under the Act, subsequent withdrawal of such approval would not be a reason to deny deduction claimed by the donor. In case of Chotatingrai Tea [2002 (10) TMI 3 - SUPREME COURT] the Hon'ble Supreme Court while dealing with the deduction claimed under section 35CCA of the Act, held that retrospective withdrawal of approval granted by the prescribed authority would not invalidate assessee’s claim of deduction. Similar view was expressed by the Hon'ble Supreme Court in Suresh Trading Co. [1996 (2) TMI 451 - SUPREME COURT] while dealing with the issue of effect of retrospective cancellation of registration certificate. A reading of Explanation to section 35(1)(ii) would make it clear that if the assessee acting upon a valid registration/approval granted to an Institution has donated the amount for which deduction is claimed, such deduction cannot be disallowed if at a later point of time such registration is cancelled with retrospective effect. Thus, we have no hesitation in holding that assessee is entitled to claim deduction under section 35(1)(ii) of the Act. Accordingly, we delete the disallowance of ₹ 17.50 lakh.- Decided in favour of assessee.
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