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TMI Blog2020 (2) TMI 1638X X X X Extracts X X X X X X X X Extracts X X X X ..... the instant appeal stated to be attributable to communication gap and compilation of necessary records is condoned on account of no objection from Revenue side. 3. The assessee's sole substantive grievance on merits seeks to reverse both the lower authorities' action disallowing/adding its section 35(1)(ii) deduction claim of Rs.33,00,000/- qua contribution made to M/s School of Human Genetics & Popular Health on the ground that the same turned out to be a mere accommodation entry provider than carrying out any such scientific research and development. We notice at the outset that this issue is no more res integra vide this tribunal's coordinate bench's order in Narbheram Vishram ITA Nos.42&43/Kol/2018 dated 27.07.2018 as under: "13 W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Central Government for the purpose of section 35 (1) (ii) of the Act, was published in the Gazette of India. However, the deduction claimed by the assessee was denied by the Assessing Officer on the basis of the allegations contained in the report of the Investigation Wing of Kolkata that the said donations were bogus. The reasons stated therein, in short, were that statements of some key persons of these two donee institutions were recorded by the Investigation authority in course of survey proceedings in their cases. The said key person, in their statements, accepted to have received donations from various entities in lieu of cash returned to them after deducting commission there from. 14.We note that, during the course of hearin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer did not allow opportunity of cross examination. We note that in absence of opportunity of cross-examination no reliance could be made on such statements to draw any adverse inference against the assessee firm. The assessee firm denied its knowledge of the statements made by these institutes which were relied on by the Investigation Wing and the Assessing Officer. We note that not providing the opportunity of cross-examination is against the principle of natural justice and for that we rely of the judgment of Hon'ble Delhi High Court in the case of CIT vs. Dharam Pal Prem Chand Ltd. [2007] 295 ITR 105, 108 (del).We note that on identical facts, the similar proposition wasupheld by the Coordinate Bench of Kolkata in the case of Raj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opportunity to cross examine Shri Swapan Ranjan Das Gupta and Shri KishanBhawasingka as held by Hon'ble Supreme Court in Andaman Timber (supra). 11. In the light of the aforesaid facts and circumstances, we cannot sustain the order of the authorities below. Therefore, we set aside the impugned order and direct the AO to allow the deduction of Rs.26,28,500/- u/s. 35(1)(ii) of the Act. 15. Now, we deal with the arguments of ld DR for the Revenue. We note that the solitary grievance of the ld DR for the Revenue is that since the registration had been cancelled by the CBDT, with retrospective effect that is, with effect from 1st April 2007, by issuing notification dated 06.09.2016, for both the institutions viz: 'Matrivani' and 'The S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. In fact the assessee's case herein falls on a much better footing than the facts before the Hon'ble Apex Court. In the case before Hon'ble Apex Court, the power of cancellation of registration us 12A of the Act was conferred by the Act on the ld CIT w.e.f. 1.10.2004 and the Hon'ble Apex Court held that prior to that date , no cancellation of registration could happen. But in the instant case, there is absolutely no provision for withdrawal of recognition u/s 35(1)(ii) of the Act . Hence we hold that the withdrawal of recognition u/s 35(1)(ii) of the Act in the hands of the payee organizations would not affect the rights and interests of the assessee herein for claim of weighted deduction u/s 35(1)(ii) of the Act." 16. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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