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TMI Blog2021 (7) TMI 894X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee has challenged the disallowance of deduction under Section 35(1)(ii) of the Act to the tune of Rs. 26,25,000/- in respect of donation made to one 'Herbicure Health Care Bio-herbal Research Foundation' ("HHEBRH" in short). The impugned disallowance has been made on the count that as per information received by the DDIT (Investigation), Kolkata a survey under Section 133A was carried out in the case of this particular organization namely Herbicure Health Care Bio-herbal Research Foundation on 27.01.2015 and it was found that donors/beneficiaries in connivance with donee and with active help of certain brokers, entry operators/bogus billers were engaged in arranging these entries of bogus donation. As the case made out b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gment passed in the matter of Andaman Timber Industries vs. CCE, reported in (2015) 62 taxmann.com 3 (SC) was relied upon by the Ld. AR contending that no cross-examination has been afforded to the assessee in the absence of which no addition could have been made based on such statement. Finally the certificate of the institution was cancelled and withdrawn by the CBDT only on 06.09.2016 much after the donation was made on 28.02.2014. It was further submitted before us by the Ld. AR that in identical matters the Hon'ble Jurisdictional High Court and the Co-ordinate Bench passed judgments deleting such additions made in respect of the donation made to the same organization in the absence of any specific evidence that the donee has depose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Herbal Research Foundation. 3. Brief facts of the case are that the assessee has filed return of income on 20.11.2014 declaring total income at Rs. 4,47,910/-. On scrutiny of the accounts, it revealed that the assessee-company has given donation to Herbicure Healthcare Bio-Herbal Research Foundation, Calcutta. A survey action was carried out at the premises of the donee wherein it revealed to the Revenue that this concern was misusing the benefit of notification issued by the Income Tax Department. It has been getting donations from various sources, and after deducting certain amount of commission, these donations were refunded in cash. On the basis of that survey report registration granted to its favour was cancelled. On the basis of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was repaid in cash, has been brought on record. In the absence of such circumstances, donation given by the assessee to the donee, on which the assessee no mechanism to check the veracity, can be doubted, more particularly, when certificate to obtain donation has been cancelled after two years of the payment of donation. It is fact which has been unearthed subsequent to the donations. Therefore, there cannot be any disallowance on this issue. We allow this ground." 6. There is no disparity on the facts. On the basis same survey report, the genuineness of the donation has been doubted in the case of the assessee also. Therefore, the issue in dispute is squarely covered in favour of the assessee. Respectfully following the order of the IT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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