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TMI Blog2019 (9) TMI 1685X X X X Extracts X X X X X X X X Extracts X X X X ..... Cir-3(1)(2), Ahmedabad for Assessment Year 2014-15 whereby and whereunder the rejection of claim of benefit of donation or Rs. 10 lakh given by the assessee to the Kolkata based company namely Herbicure Healthcare Bio Herbal Research Foundation (HHBRF) ordered by the Ld. AO has been confirmed. 2. At the time of the hearing of the appeal, the Ld. Counsel appearing for the assessee submitted before us that rejection was made on the ground that by and under a notification being No. 79/2016 dated 06.09.2016 issued by CBDT the approval granted to such foundation has been withdrawn. Hence, it was held that the assessee is the beneficiary of such bogus donation under section 35(1)(ii) of the Income Tax Act. It was further contented by the Ld. AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure towards donation. He observed that donations were given to Herbicure Health Care Bio-herbal Research Foundation ("Herbicure" for short). According to the AO a survey under section 133A was conducted by the DDIT(Investigation) Unit-1 & 2, Kolkatta on 27.1.2015 at "Herbicure" foundation. During the course of survey, it was found that donors/ beneficiaries in connivance with donee and with active help of certain brokers, entry operators/bogus billers were engaged in arranging these entries of bogus donation. According to the AO after an inquiry, "Herbicure" was prohibited from receiving donation. On the strength of this report of survey team, the AO has treated this donation as bogus and disallowed the claim of donation made by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from various sources, and after deducting certain amount of commission, these donations were refunded 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 bring any 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 institu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y report, the genuineness of the donation has been doubted in the case of the assessee also. Therefore, the issue in dispute is squarely covered in favour of the assessee. Respectfully following the order of the ITAT in the case of S.G.Vat care P.Ltd., we do not find any merit in the appeal of the Revenue. It is dismissed. 7. In the result, appeal of the Revenue is dismissed." 5. Since the donation has not been doubted by the Revenue in the case of the assessee, in the absence of any changed circumstances, respectfully relying upon the judgment passed by the Co-ordinate Bench we allow the appeal preferred by the assessee. Consequentially, the addition made by the authorities below is deleted. 6. In the result, the assessee's appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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