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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 ..... he net profit disclosed by the assessee is aboutRs. 40 lakhs. Out of thisRs. 40 lakhs, a sum ofRs. 20 lakhs was donated to M/s Herbicure Health Care and Bio Herbal Health Foundation. Another sum ofRs. 3 lakhs was donated to School of Human Genetics and Population Health. According to the Ld. counsel, both the institutions were research institutions, therefore, the assessee is eligible for deduction under Section 35(1)(ii) of the Income-tax Act, 1961 (in short "the Act"). According to the Ld. counsel, a survey was conducted in the premises of the above said two research organizations at Kolkata and it was found during the course of survey that transactions of donations were not genuine and it was only accommodation entry routed through banki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 chosen the Kolkata institutions for giving donation. Since donations were given to the research institutions, according to the Ld. counsel, the assessee is eligible for deduction under Section 35(1)(ii) of the Act. Since a copy of statement and other documents were not furnished to the assessee, according to the Ld. counsel, there was a gross violation of principles of natural justice. 5. We have heard Ms. Vija ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commodation 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 back to the companies/persons who are identified by the donors. Some of the funds also appear to have been refunded to the donors through banking channel. From the order of the Assessing Officer it appears that one of the institutions, namely, School of Human Genetics and Population Health moved the Settlement Commission and admitted that they have provided accommodation entries in respect of bogus donations received by them. Similarly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Ld. D.R. claims that as per Office Manual, copies need to be furnished only on req ..... X X X X Extracts X X X X X X X X Extracts X X X X
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