Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 1314 - ITAT KOLKATADisallowance u/s 35(1)(ii) - Donation made to "The School of Human Genetics and Population Health", an Institute approved by the Central Government - eligibility to claim weighted deduction @175% - Held that:- We note that the statements of the various parties and persons were recorded behind the back of the assessee and the AO did not allow opportunity of cross examination. We note that in absence of opportunity of cross-examination no reliance could be made on such statements to draw any adverse inference against the assessee firm. The assessee firm denied its knowledge of the statements made by these institutes which were relied on by the Investigation Wing and the Assessing Officer. We note that not providing the opportunity of cross-examination is against the principle of natural justice and for that we rely of the judgment of CIT vs. Dharam Pal Prem Chand Ltd.[2007 (5) TMI 131 - HIGH COURT, DELHI]. We note that the withdrawal of recognition u/s 35(1)(ii) 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). As relying on DCIT, CIRCLE-12 (1), KOLKATA VERSUS M/S MACO CORPORATION (INDIA) PVT. LTD. [2018 (3) TMI 811 - ITAT KOLKATA] we direct the AO to grant deduction u/s 35(1)(ii). Disallowance u/s 14A - Held that:- We note that in this ground of appeal the Assessee Firm has challenged the disallowance u/s 14A. We note that in the case of REI Agro Ltd.[2014 (4) TMI 713 - CALCUTTA HIGH COURT] has held that it is only the investments which yields dividend during the previous year that has to be considered while adopting the average value of investments for the purpose of Rule 8D(2)(ii) & (iii) of the Rules. The assessee has submitted the details of dividend income vis a vis the value of investments in those shares. We direct the AO to compute disallowance u/s 14A read with rule 8D, only after considering the investments which earned the exempt income. Therefore, we allow this ground for statistical purposes.
|