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TMI Blog2019 (11) TMI 1560X X X X Extracts X X X X X X X X Extracts X X X X ..... ent case and hence, respectfully following this Tribunal order, we delete the disallowance made by the AO u/s. 35(1)(ii) of the IT Act. Appeal filed by the assessee is allowed. - Shri N.V. Vasudevan, Vice-President And Shri Arun Kumar Garodia, Accountant Member Assessee by : Shri Muralidhara .H, Advocate Revenue by : Shri Sunil Kumar Agarwal, Addl. CIT (DR) ORDER Shri A.K. Garodia, This appeal is filed by the assessee and the same is directed against the order of ld. CIT(A)-6, Bangalore dated 31.07.2019 for Assessment Year 2014-15. 2. The grounds raised by the assessee are as under. 1. The order of the learned Commissioner of Income Tax (Appeal) confirming the order of Assessing officer is opposed to law and facts of the case. 2. The appellant company has given donation of ₹ 15,00,000/- and claimed weighted deduction of ₹ 26,25,000/- U/s 35(1)(ii) on 20.01.2014 to approved Herbicure Society by CBDT vide notification dated 14.03.2008. The learned Assessing Officer has disallowed ₹ 26,25,000/- . 3. The Learned Commissioner of Income Tax (Appeal) has erred in upholding the reopening of assessment 2014-15 by the assessing officer on the basis of report from investig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book. It was also submitted that the issue in dispute is regarding the assessee s claim u/s. 35(1)(ii) of the IT Act. He submitted that an explanation was inserted below section 35(1)(iii) of the IT Act by the Taxation Laws (Amendment) Act, 2006 with retrospective effect from 01.04.2006 and as per this explanation, the assessee s claim for deduction under clause (ii) or clause (iii) to section 35(1) shall not be denied merely on the ground that subsequent to the payment of such sum by the assessee, the approval granted to the association, university, college or other institution referred to in clause (ii) or clause (iii) has been withdrawn. He pointed out that in the present case, amount was given by the assessee to M/s. Herbicure Healthcare Bio-Herbal Research Foundation (HHBRF) on 28.10.2014 as per the voucher available on page no. 2 of the paper book by way of cheque no. 267349 dated 28.10.2014. He also submitted that approval was granted by CBDT to this institution on 14.03.2008 as per copy of notification available on page no. 5 of the paper book. Thereafter he pointed out that this notification was withdrawn by CBDT as per another notification dated 06.09.2016 of which copy i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r scientific research : Provided that such association, university, college or other institution for the purposes of this clause- (A) is for the time being approved, in accordance with the guidelines, in the manner and subject to such conditions as may be prescribed; and (B) such association, university, college or other institution is specified as such, by notification in the Official Gazette, by the Central Government : Provided further that where any sum is paid to such association, university, college or other institution in a previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, the deduction under this clause shall be equal to the sum so paid; (iia) any sum paid to a company to be used by it for scientific research: Provided that such company- (A) is registered in India, (B) has as its main object the scientific research and development, (C) is, for the purposes of this clause, for the time being approved by the prescribed authority in the prescribed manner, and (D) fulfils such other conditions as may be prescribed; (iii) any sum paid to a research association which has as its object the undertaking of research in social science or s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the date on which such notification is issued) as may be specified in the notification: Provided also that where an application under the first proviso is made on or after the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President, every notification under clause (ii) or clause (iii) shall be issued or an order rejecting the application shall be passed within the period of twelve months from the end of the month in which such application was received by the Central Government. 6. As per explanation below section 35(1)(iii), it is specified that deduction should not be denied to the donor merely on the ground that subsequent to the payment of such sum by the assessee, the approval granted to the association, university, college or other institution referred to in clause (ii) or clause (iii) has been withdrawn. At this juncture, we feel it proper to reproduce para no. 2.1 of the assessment order as per which this disallowance was made by the AO. This para reads as under. 2.1 Disallowance The assessee has paid ₹ 15,00,000/- vide Donation Cheque No. 122172 dated: 18.01.2014 of Bank of India same was acknowledge by M/s. Herbicure Healthca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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