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| The Tax Publishers2019 TaxPub(DT) 3751 (Kol-Trib) INCOME TAX ACT, 1961
Section 35(1)(ii)
Disallowance of deduction under section 35(1)(ii) on mere basis of statement recorded during survey in case of donee organization could not be sustained due to absence of any supportice evidence and on account of no opportunity of cross-examination afforded to assessee.
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Business deduction under section 35(1)(ii) - Scientific research expenditure - Allowability -
Assessee claimed weighted deduction under section 35(1)(ii) of donation paid to HHBRF. AO denied assessee's claim relying on survey statement of founder of HHBRF wherein he admitted that donation received by HHBRF had been retunred in cash some operators, to the donor, in lieu of a commission.Held: It is an undisputed fact that neither a copy of alleged statement was supplied to assessee nor was any opportunity of cross-examination given by AO. Merely based on statement recorded during survey not backed by any other supporting, evidence, no disallowance could be made.
Followed:Dy. CIT v. Maco Corporation (India) (P) Ltd. Order, dt. 14-3-2018 and CIT v. Chotatingrai Tea & Ors. (2002) 258 ITR 529 (Sc) : 2002 TaxPub(DT0 1674 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, KOLKATA BENCH
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