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2020 (1) TMI 396 - AT - Income TaxDisallowance of deduction claimed u/s 35(i)(ii) - bogus donation to Herbicure Health Care Bio Herbal Research Foundation, Calcutta - AO received information from the investigation wing that the aforesaid institution was engaged in facilitating the donation in lieu of earning commission and assessee was one the beneficiaries - HELD THAT:- As decided in S.G. VAT CARE P. LTD [2019 (1) TMI 1694 - ITAT AHMEDABAD] AO is harping upon an information supplied by the survey tem of Calcutta. He has not specifically recorded statement of representatives of the donee. He has not brought on record a specific evidence wherein donee has deposed that donations received from the assessee was paid back in cash after deducting commission. On the basis of a general information collected from the donee, the donation made by the assessee cannot be doubted. Neither representatives of the donee have been put to cross-examination, nor any specific reply deposing that such donation was not received, or if received the same was repaid in cash, has been brought on record. In the absence of such circumstances, donation given by the assessee to the donee, on which the assessee no mechanism to check the veracity, can be doubted, more particularly, when certificate to obtain donation has been cancelled after two years of the payment of donation. It is fact which has been unearthed subsequent to the donations. Therefore, there cannot be any disallowance on this issue. We allow this ground.
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