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TMI Blog2017 (9) TMI 1842X X X X Extracts X X X X X X X X Extracts X X X X ..... ? HELD THAT:- Admittedly, AO placed reliance on the statement recorded during the course of survey operation and other material found during the course of survey operation. Principles of natural justice is one of the cordial rule to be followed in the adversary system of judicial administration. Rule of law is supreme in this country, therefore, unless it otherwise provided in the relevant statute enacted by the Legislature, the principles of natural justice cannot be taken away by means of the procedure or the formalities prescribed in the Office Manual which is meant for the internal administration of Department. In this case, even the Office Manual was not brought to the notice of the Bench even though the D.R. claims that as per O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yaprabha, JCIT ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) 13, Chennai, dated 04.05.2017 and pertains to assessment year 2013-14. 2. Shri P. Raghunathan, the Ld. counsel for the assessee, submitted that for the year under consideration, the net profit disclosed by the assessee is about₹ 40 lakhs. Out of this₹ 40 lakhs, a sum of₹ 20 lakhs was donated to M/s Herbicure Health Care and Bio Herbal Health Foundation. Another sum of₹ 3 lakhs was donated to School of Human Genetics and Population Health. According to the Ld. counsel, both the institutions were research institution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Kishanchand Chellaram v. CIT 90 TMI 3, 1980, SC, the Ld. counsel submitted that evidence collected at the back of the assessee has to be confronted to the assessee giving an opportunity to rebut the evidence, otherwise the same cannot be relied upon by the Revenue authorities. Placing reliance on the judgement of Delhi High Court in CIT v. SMC Share broker Ltd. 159 Taxman 306, the Ld. counsel submitted that the statement cannot be relied upon unless an opportunity was given to the assessee to cross-examine. 4. On a query from the Bench, is there any special reason for donating the institutions in Kolkata when there are several institutions of similar nature in the city of Chennai? The Ld. counsel submitted that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailable on record. From the orders of the lower authorities it appears that out of₹ 40 lakhs of net profit,₹ 23 lakhs was donated to two institutions at Kolkata for the purpose of claiming deduction under Section 35(1)(ii) of the Act. On the basis of the survey conducted by the Revenue authorities in the premises of the above said two research institutions at Kolkata, it was found that the said institutions were providing accommodation entries by receiving bogus donation. One of the Directors who was examined, categorically admitted that the donations were received from various persons across the country and after receiving small amounts of cash at 3% in the initial year to 8% in the later years, the balance amount was returned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and an opportunity shall be given to the assessee to rebut the same. In India, we are following adversary system of judicial administration, therefore, no order can be passed against any person by the judicial authorities / officers who are entrusted with judicial work without furnishing relevant copies of the document and statement on which reliance was placed. 8. In this case, admittedly, the Assessing Officer placed reliance on the statement recorded during the course of survey operation and other material found during the course of survey operation. Principles of natural justice is one of the cordial rule to be followed in the adversary system of judicial administration. Rule of law is supreme in this country, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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