9911796707
TMI Blog2021 (12) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... e on 22.9.2014 declaring total loss of (-) Rs. 20,97,859/-. The return was processed under section 143(1) of the Act and thereafter selected for scrutiny assessment under section 143(3) of the Act. During the assessment proceedings, the ld. AO AO noticed that the assessee has given donation of Rs. 30.00 lakhs to one School of Human Genetics & Population Health (SHG&PH) which was claimed as deduction under section 35(1)(ii). In this connection, a survey under section 133A of the Act was carried out, and on the basis of the survey carried out by the Investigation wing of the Department at some of the institutions, the department has received an information from DDIT(Invt), Ahmedabad, that assessee was one of the beneficiaries indulged in givi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord carefully. The case of the assessee is that claim under section 35(1)(ii) of the Act for making donation to the institution notified by the Government of India in this behalf. When the assessee made the impugned donation, permission/approval granted by the Govt. of India with regard to provisions of sections 35(1)(ii) and 80G(5)(iv) was very much in force, and based on which, the assessee has made the donation to this institution. The assessee has provided sufficient evidence to prove its case before both the authorities below, and based on which, the ld. CIT(A) rightly allowed claim of the assessee. We find that recent judgment of Hon'ble Gujarat in the case of PCT Vs. Thakkar Ganpatlal HUF, wherein Hon'ble High Court has dealt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al income at Rs. 4,47,910/-. On scrutiny of the accounts, it revealed that the assessee-company has given donation to Herbicure Healthcare Bio-Herbal Research Foundation, Calcutta. A survey action was carried out at the premises of the donee wherein it revealed to the Revenue that this concern was misusing the benefit of notification issued by the Income Tax Department. It has been getting donation from various sources, and after deducting certain amount of commission, these donation were refused in cash. On the basis of that survey report registration granted to its favour was cancelled. On the basis of the outcome of that survey report, the ld. AO construed the donation given by the assessee as bogus. Appeal to the ld. CIT(A) did not brin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch the assessee no mechanism to check the veraci, 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 to the donations. Therefore, there cannot be any disallowance on this issue. We allow this ground." 7. In the facts of the present case, the CIT(Appeals) has given the finding of the fact that the amount of donation was transferred to the Herbicure through Bank channel and there is no evidence that the same is returned back in cash. 8. It is also found that the Herbicure Foundation has confirmed that the amount has been utilized for scientific research vide confirmation dated 29.09.2016. Accordingly, the onus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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