TMI Blog2021 (1) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... sh by giving fair opportunity to both the sides. Nowhere it is emanating from perusal of assessment order that the statement recorded by the Department that was used to disallow assessee s claim was provided to the assessee or the opportunity to cross- examine the person whose statement was used against the assessee was afforded to the assessee. AO ought to have provided material used against the assessee apart from providing an opportunity to cross examine deponent whose statement was used against the assessee. Besides the said statement there is no substantive material to disbelieve the claim of assessee. The request of the assessee to cross-examine the person whose statement was used by the Revenue for making the addition was also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tune of ₹ 7,50,000/- to Navjeevan Charitable Trust and had claimed deduction of the same under section 35AC of the Income Tax Act, 1961 ( in short the Act ). The return of the assessee was processed under section 143(1) of the Act. Thereafter, on the basis of information received from DCIT, Central Cir.2(1), Mumbai, assessment for assessment year 2010-11 was reopened on the ground that the assessee had obtained accommodation entry from the Navjeevan Charitable Trust and hence, the donation is nongenuine. The Assessing Officer vide assessment order dated 22/12/2017 passed under section 143(3) r.w.s. 147 of the Act disallowed assessee s claim of deduction under section 35AC of the Act. Aggrieved by the assessment order, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnels and cash was returned back to the donors after deducting commission of 3%. The assessee is one of the beneficiaries of bogus donations. Thus, it is beyond doubt that the deduction claimed by the assessee under section 35AC of the Act is the result of bogus donation. 5. The submissions made by ld. Departmental Representative heard. The material available on record examined. The assessee during assessment proceedings in order to substantiate genuineness of the donation made had produced the donation receipts and bank statements. We observe that when the alleged donation was made on 17/07/2009 by the assessee, the Trust was holding valid certificate of exemption. The registration was withdrawn on 20/12/2016. During the assessment proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material used against the assessee apart from providing an opportunity to cross examine deponent whose statement was used against the assessee. Besides the said statement there is no substantive material to disbelieve the claim of assessee. The request of the assessee to cross-examine the person whose statement was used by the Revenue for making the addition was also declined by the CIT(A). Taking into consideration entirety of facts, I deem it appropriate to restore the issue to the file of Assessing Officer for fresh adjudication after affording opportunity of cross examination to the assessee, in accordance with law. 8. In the result, appeal of the assessee is allowed for statistical purposes in the terms aforesaid. Order prono ..... X X X X Extracts X X X X X X X X Extracts X X X X
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