TMI Blog2018 (2) TMI 1466X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 143(3) of the Act. The foundation carried out its activities under a notification issued by the Central Government which entitled donations made to it, the benefit of Section 35(1) of the Act. We further find that during the course of regular proceedings itself the Respondent-Assessee brought it to the notice of Assessing Officer that there is a C.B.I. enquiry proceedings against the M/s. Indian Medical Scientific Research Foundation, Agra and offered to withdraw the claim for donation. Thus, there was a complete disclosure on the part of the Respondent-Assessee. In fact, on appreciation of facts, both the CIT(A) and the Tribunal have held that the Respondent was misled into believing that M/s. Indian Medical Scientific Research Fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of ₹ 1.00 Crore given to M/s. Indian Medical Scientific Research Foundation, Agra was found by the Central Bureau of Investigation (C.B.I.) to be bogus. The return of income filed consequent to the notice, did not claim the benefit of deduction of ₹ 1.00 Crore under Section 35(1) of the Act and assessment was made under Section 143(3) read with Section 147 of the Act. 5. Thereafter, proceedings for penalty under Section 271(1)(c) of the Act were commenced. The Respondent pointed out that during the regular assessment proceedings, during the course of assessment proceedings, the Respondent-Assessee had itself informed the Assessing Officer about the investigation being conducted by the C.B.I. in respect of one M/s. Indian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 200 percent of the tax sought to be evaded. 6. On appeal of CIT(A) by an order dated 24 March 2011 set aside the penalty. This inter alia after holding that at the time that the Respondent made the original claim for donation under Section 35(1) of the Act it was misled into believing that M/s. Indian Medical Scientific Research Foundation, Agra was a genuine institution. In fact all proceeded on the above basis and it was only now, on conclusion of enquiry by the C.B.I. that it was found to be a bogus institution. 7. The Tribunal by the impugned order dated 22 December 2014 dismissed the Appeal of the Revenue by recording the fact that M/s. Indian Medical Scientific Research Foundation, Agra was in fact, approved by the Central Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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