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2021 (7) TMI 194 - AT - Income TaxDeduction u/s 35(1)(ii) - Disallowance of donation made to School of Human Genetics & Population Health, Kolkata - assessee submitted that assessee had made donation to the aforesaid Trust on 21/02/2012 and claimed benefit of deduction u/s 35(1)(ii) - HELD THAT:- Undisputedly, on the date of donation institute was holding valid approval un// 35(1)(ii) - assessee has made donation to the institute through banking channel against receipt. Assessee's claim of deduction in return of income was accepted by the Department - withdrawal notification by the Revenue in 2016 would not operate retrospectively to disallow assessee's claim of deduction under section 35(1) in A.Y. 2012-13. The assessee would be eligible for benefit of weighted deduction u/s 35(1)(ii) in assessment year 2012-13. Subsequent withdrawal of approval under section 35(1)(ii) of the Act from the institution by the Department would not prejudice the assessee's claim of donation in the impugned assessment year. Hon'ble Supreme Court of India in the case of CIT vs. Chotatingrai Tea & Ors [2002 (10) TMI 3 - SUPREME COURT] where the assessee had claimed deduction u/s 35CCA and the same was withdrawn by the Department on the ground that approval granted by the prescribed authority to the society to whom assessee had made donations was withdrawn with retrospective effect, the Hon'ble Court dismissing Revenue's appeal concurred with the reasoning wherein it was held that, 'once it was found that the assessee had fulfilled all the conditions which had been laid down u/s 35CCA for claiming deduction of the amount donated by it, there was no obligation on the part of the assessee to see that the amount was utilised for the purpose for which it was donated - deduction was allowed on the certificate furnished and it was not for the assessee to show whether the institution to which the money had been donated was carrying, on the rural development work, as envisaged u/s 35CCA of the Act.' Similar view has been expressed in the case of National Leather Cloth Manufacturing Co. [1999 (10) TMI 55 - BOMBAY HIGH COURT], Seksaria Biswan Sugar Factory Ltd. [1990 (3) TMI 47 - BOMBAY HIGH COURT] and Bhanumati Malraj Kabali [2019 (1) TMI 1482 - BOMBAY HIGH COURT]. The Tribunal has also been taking consistent view on this issue in allowing assessee's claim of deduction where on the date of donation the donee institute was having valid approval. The findings of CIT(A) on assessee's claim of deduction u/s 35(1) are set-aside are allowed.
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