TMI Blog2019 (11) TMI 1436X X X X Extracts X X X X X X X X Extracts X X X X ..... 35(1)(ii) claimed in respect of the amounts of donations made to two Institutions.- Appeal of the assessee is allowed. - ITA No.582/Kol/2019 - - - Dated:- 13-11-2019 - Shri S.S.Godara, JM And Dr. A.L.Saini, AM Appellant by: None Respondent by: Smt. Ranu Biswas, Addl. CIT ORDER Per Bench: The captioned appeal filed by the assessee , pertaining to assessment year 2014-15, is directed against the order passed by the Commissioner of Income Tax (Appeal)-6, Kolkata, which in turn arises out of an assessment order passed by the Assessing Officer u/s 147 / 143(3) of the Income Tax Act, 1961 (in short the Act ) dated 11/11/2016. 2. At the time of hearing none appeared on behalf of assessee in spite of issuance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by him under section 35(1)(ii) of the Act in respect of the amounts of donations made to two Institutions viz. Matrivani Institute Experimental Research Education (hereinafter referred to as Matrivani ) and The School of Human Genetics and Population Health (hereinafter referred to as SHG ). The Assessee Firm in A.Y. 2014-15, madedonation of Rs,2,00,00,000/ to Matrivani and Rs,4,00,00,000/ to SHG and claimed weighted deduction of ₹ 10,50,00,000 under section 35(1)(ii) of the Income Tax Act, 1961, being 175% of the aggregate sum of ₹ 6,00,00,000/- (Rs,2,00,00,000 + Rs,4,00,00,000) donated to these two institutes which were approved bythe Central Government for the purposes of section 35(l)(ii) of the Act read with Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ni and SHG , are Sctentific Research Association approved as such by Central Government under section 35(1)(ii) of the Income Tax Act, 1961 vide Notification, bearing No. 229/2007 (F.No.203/135/2007/ITA-II) dated 21.08.2007 and Notification No. 4/2010 (F. No. 2B/A/2009,/ITA-II dated 28.01.2010 respectively, published in Official Gazette of India. The assessee categorically denied that it ever received back the amounts of donations in cash or in kind from the said Institutions and from any person whatsoever in lieu of the various amounts donated to these two institutions. We note that in the statements, of key persons and alleged brokers recorded by the Investigation Wing in course of survey proceedings, in their cases and the extracts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Herbicure. We have reproduced Question no. 22 and 23 and answers given by Shri Swapan Ranjan Dasgupta, wherein he admits to provide accommodation entries in lieu of cash. This information we should say can be the tool to start an investigation when the assessee made the claim for weighted deduction. The general statement of Shri Swapan Ranjan Dasgupta against donation made the claim of assessee for deduction suspicious. However, when the AO investigated, Shri Swapan Ranjan Dasgupta has confirmed that M/s. Herbicure was in receipt of the donation and it has not given any refund in cash, then the sole basis of disallowance of claim as a matter of fact disappeared. It should be remembered suspicion howsoever strong cannot take the place o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erests of the assesseeherein for claim of weighted deduction u/s 35(1)(ii) of the Act, for that we rely on the judgmentof the Coordinate Bench, Kolkata, in the case of M/s Maco Corporation India (P) Ltd, ITA No.16/Kol/2017, for Assessment Year 201314, wherein it was held as follows: 29. All the three High Courts after examining the issue, in the light of the object of Section 12A of the Act and Section 21 of the General Clauses Act held that the order of the CIT passed under Section 12A is quasi judicial in nature. Second, there was no express provision in the Act vesting the CIT with power of cancellation of registration till 01.10.2004; and lastly, Section 21of the General Clauses Act has no application to the order passed by the CIT und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10,50,00,000/-, for A.Y. 2014-15,as claimed by him under section 35(1)(ii) of the Act in respect of the amounts of donations made to two Institutions viz. Matrivani Institute Experimental Research Education and The School of Human Genetics and Population Health . Accordingly, the Grounds 1 to 4 raised by the assessee for A.Y. 2013-14 and the Grounds 1 to 5 raised by the assessee for A.Y. 2014-15 are allowed. 5. As the issue is squarely covered in favour of the assessee by the decision of Coordinate Bench in the case of Narbheram Vishram (supra) in I.T.A. Nos. 42 43/Kol/2018 for A.Y. 2013-14 2014-15, and there is no change in facts and law and the revenue is unable to produce any material to controvert the above said findings of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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