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TMI Blog2019 (5) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals, we heard these appeals together and disposing the same by this common order. 2. The first issue arises for consideration is disallowance of Rs. 1,44,556/- under Section 37 of the Income-tax Act, 1961 (in short 'the Act'). 3. Shri N. Vijay Kumar, the Ld. representative for the assessee, submitted that the assessee met with an accident and suffering head injury for the last several years. According to the Ld. representative, the assessee is carrying out his business through sales commission agents for procuring orders and other business related activities. The assessee paid commission to various agents who rendered service for procuring orders, collection, etc. According to the Ld. representative, the Assessing Officer dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue that Shri Navneet Bagdi has not rendered any service. In those circumstances, the CIT(Appeals) ought to have allowed the claim of the assessee in toto. Therefore, the order of the CIT(Appeals) in respect of commission payment to Shri Navneet Bagdi is modified and the Assessing Officer is directed to allow the entire payment of Rs. 2,89,112/-. 6. Now coming to the disallowance of Rs. 3,50,000/- under Section 35(1)(ii) of the Act. 7. Shri N. Vijay Kumar, the Ld. representative for the assessee submitted that the assessee made donations to the institutions through banking channel. Therefore, according to the Ld. representative, the CIT(Appeals) is not justified in disallowing the donations under Section 35(1)(ii) of the Act. 8. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y has come back to the assessee. This is the transaction arranged in such a way that the accommodation entries were made at several entities level and ultimately the money came back to the assessee. Herbicure Healthcare Bio-Herbal Research Foundation of Kolkata involved in the fraudulent and sham transactions, providing accommodation entries and claiming bogus weighted deduction to the extent of 175%. The antecedents of the recipient were unearthed by the Department during the course of survey operation. The material available on record clearly establishes that the so-called donation ultimately received back by the assessee after reducing the commission. Therefore, the CIT(Appeals) in a very reasoned order found that the assessee involved i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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