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TMI Blog2020 (1) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... sed that donations received from the assessee was paid back in cash after deducting commission. On the basis of a general information collected from the donee, the donation made by the assessee cannot be doubted. Neither representatives of the donee have been put to cross-examination, nor any specific reply deposing that such donation was not received, or if received the same 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim of deduction u/s. 35(1)(ii) on account of donation. On verification of the detail furnished by the assessee, the assessing officer noticed that assessee has claimed deduction to the amount of ₹ 20.75 lacs u/s. 35(1)(ii) on giving of donation of ₹ 13 lacs to Herbicure Health Care Bio Herbal Research Foundation, Calcutta. The assessing officer has received information from the investigation wing that the aforesaid institution was engaged in facilitating the donation in lieu of earning commission and assessee was one the beneficiaries, therefore, the assessee was asked to explain why the claim of deduction to the amount of ₹ 22.75 lacs u/s. 35(1)(ii) should not be disallowed. The assessee submitted that it has given the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d perused the material on record carefully. It is observed that identical issue on similar fact has been adjudicated by the Co-ordinate Benches of the ITAT in various cases regarding claim of donation u/s. 35(1)(ii) for giving donation to the same institution i.e. Herbicure Health Care Bio Herbal Research Foundation holding that the assessee has no mechanism to check the veracity when certificate to obtain donation has been cancelled after two years of the payment of donation. It is also noticed that certificate for receiving donation was cancelled on 5th Sep, 2016 whereas in the case of the assessee the donation was given on 11th March, 2014 and 18th March, 2014 to the amount of ₹ 13 lacs. Relevant part of the decision of Co-ordinate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny relief to the assessee. 4. Before us, the ld.counsel for the assessee contended that donations were given on 25.3.2014. At that point of time, donee was notified as eligible institution and fall within the statutory eligibility criterion. Certificate for receiving donation was cancelled on 5.9.2016. There is no mechanism with the assessee to verify whether such donee was a genuine institute or not, which can avail donation from the society. 5. The ld.DR, on the other hand, contended that in the investigation it came to know about bogus affairs conducted by the donee. Hence, these donations are rightly been treated as bogus, and addition is rightly made. 6. We have duly considered riva ..... X X X X Extracts X X X X X X X X Extracts X X X X
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