TMI Blog2020 (2) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... r Gadale, Member (J) For the Appellant : Muralidhara H., Advocate For the Respondents : R. Premi, JCIT (D.R.) ORDER Pavan Kumar Gadale, Member (J) 1. The assessee has filed an appeal against the order of Commissioner of Income Tax (Appeals)-6, Bangalore passed under Section 143(3) r.w.s. 147 and 250 of the Income Tax Act, 1961 ('the Act'). 2. The assessee has raised the grounds of appeal as under: 1. The order of the learned Commissioner of Income Tax (Appeal) confirming the order of Assessing officer is opposed to law and facts of the case. 2. The appellant company has given donation of ₹ 25,00,000/- and claimed weighted deduction of ₹ 43,75,000/- U/s. 35(1)(ii) on 20.01.2014 to approved Herbicure Society by CBDT vide notification dated 14.03.2008. The learned Assessing Officer has disallowed ₹ 43,75,000/-. 3. The Commissioner of Income tax (Appeals) has confirmed the disallowance of donations given by the appellant company to a society which was approved and notified by the CBDT on 14.03.2008, the appellant company had given donation to the society on 20.01.2014 and the CBDT has cancelled the approval vide notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the assessee has claimed deduction under Section 35(1) of the Act and certain clarifications were called for. The assessee has filed explanations on 27.09.2017 mentioning, that the assessee is eligible for the deduction under Section 35 of the Act even if the approval of recipient organization is withdrawn subsequent to the payment made by the assessee. Whereas, the Assessing Officer has referred to the CBDT Notification No. 79/2016/F. No. 203/135/2007/ITA.II Dt. 6.9.2016 on revoking of approval. The assessee has paid an amount of ₹ 25 lakhs to Herbicure Healthcare Bio-Herbal Research Foundation, whereas the Assessing Officer has disallowed the contribution by the assessee under Section 35(1) of the Act of ₹ 43,75,000 being weighted deduction of 175% and assessed the total income of ₹ 94,33,020 and passed the order under Section 143(3) r.w.s. 147 of the Act dt. 13.12.2018. Aggrieved by the order, the assessee has filed an appeal with the CIT(Appeals). Whereas the CIT(Appeals), considering the findings of the Assessing Officer and submissions of the assessee concurred with the action of the Assessing Officer and dismissed the appeal. Aggrieved by the CIT(App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purchase of materials used in such scientific research, the aggregate of the expenditure so laid out or expended within the three years immediately preceding the commencement of the business shall, to the extent it is certified by the prescribed authority to have been laid out or expended on such scientific research, be deemed to have been laid out or expended in the previous year in which the business is commenced; (ii) an amount equal to one and one half times of any sum paid to a research association which has as its object the undertaking of scientific research or to a university, college or other institution to be used for scientific research: Provided that such association, university, college or other institution for the purposes of this clause- (A) is for the time being approved, in accordance with the guidelines, in the manner and subject to such conditions as may be prescribed; and (B) such association, university, college or other institution is specified as such, by notification in the Official Gazette, by the Central Government: Provided further that where any sum is paid to such association, university, college or other institution in a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dited annual accounts) or information from the research association, university, college or other institution as it thinks necessary in order to satisfy itself about the genuineness of the activities of the research association, university, college or other institution and that Government may also make such inquiries as it may deem necessary in this behalf: Provided also that any notification issued, by the Central Government under clause (ii) or clause (iii), before the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President, shall, at any one time, have effect for such assessment year or years, not exceeding three assessment years (including an assessment year or years commencing before the date on which such notification is issued) as may be specified in the notification: Provided also that where an application under the first proviso is made on or after the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President, every notification under clause (ii) or clause (iii) shall be issued or an order rejecting the application shall be passed within the period of twelve months from the end of the month in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... March 2008 with effect from 1st April, 2007 and shall be deemed that the said notification has not been issued for any tax benefits under the Income tax Act, 1961 or any other law of the time being in force. Hence, ₹ 26,25,000/- being 175% of ₹ 15,00,000/- added back to the income of the assessee and completed the assessment for A.Y. 2014-15 accordingly. 7. From this para of the assessment order, it comes out that disallowance was made by the AO merely on this basis that CBDT had withdrawn the benefit from M/s. HHBRF and hence, this explanation becomes applicable and as per this explanation, disallowance cannot be made merely on this basis that subsequent to the payment of sum in question by the assessee, the approval granted to the association, university, college or other institution referred to in clause (ii) or clause (iii) of section 35 has been withdrawn. There is no other basis given by the AO for making disallowance. The Tribunal order cited by ld. AR of assessee having been rendered in the case of DCIT Vs. Maco Corporation (India) Pvt. Ltd. (supra) is also applicable in the facts of present case and hence, respectfully following this Tribunal order, we d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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