INCOME TAX ACT, 1961

Section 35(1)(ii)

Business deduction under section 35(1)(ii) - Donation made to approved scientific research institution - Denial due to subsequent withdrawal of approval with retrospective effect -

Assessee claimed weighted deduction under section 3591)(ii) of donation made to 'School of Human Genetics and Population Health' ('SHG & PH'). AO disallowed deduction on the ground of subsequent cancellation of registration granted to SHG & PH with retrospective effect. Held: From a perusal of 'Explantion' to section 35(1)(ii), it can safely be gathered that subsequent withdrawal of approval granted to donee institution cannot form a reason to deny deduction claimed by donor under the section. In assessee's case it was discernible from the records, that at the time of making of donation donee institute, i.e., SHG & PH was having a valid approval granted under the Act by CBDT and, accordingly, AO was not justified in denying deduction due to subsequent withdrawal of approval with retrospective effect.

Followed:Asstt. CIT, Mumbai v. Shirish Lakhamshi Keniya ITA 5385/Mum/2018, assessment year 2013-14, ITAT Mumbai, dated 29-1-2020, Pooja Hardware (P) Ltd. v. Asstt. CIT, Mumbai, ITA 3712/Mum/2018, assessment year 2012-13, dated 28-10-2019, Mahesh C Thakkar v. ACIT, Mumbai ITA 5121 5122/Mum/2018, assessment year 2012-13 and 2014-15, dated 21-8-2019, Borsad Tobacco Co. (P) Ltd. v. Dy. CIT Central Circle 8(1), Mumbai ITA 2040/Mum/2018, assessment year 2014-15, dated 17-6-2019, Urnish Jewellers v. Asst. CIT, Mumbai, ITA 1583/Mum/2019, assessment year 2012-13, dated 22-5-2019 : 2019 TaxPub(DT) 3888 (Mum-Trib), Motilal Dahyabhai Jhaveri & Sons v. Asst. CIT, Mumbai ITA 3453/Mum/2018 and 1584/Mum/2019, AY.2013-14 and 2014-15, dated 24-4-2019 : 2019 TaxPub(DT) 3056 (Mum-Trib), Kitchen Essential v. ACIT, Thane, ITA 6672 & 6673/Mum/2013, assessment year 2013-14 and 2014-15, dated 15-1-2019, Avis Life Care (P) Ltd. v. DCIT, Jaipur, ITA 989/JP/2018, assessment year 2014-15, dated 20-6-2019, Narbheram Vishram v. Dy. CIT Central Circle, Kolkata, ITA 42 & 43/Kol/2018, assessment year 2013-14 and 2014-15, dated 27-7-2018, Dy.CIT, Kolkata v. Maco Corporation (India) (P) Ltd. ITA 16/Kol/2017, AY.2013-14, dated 14-3-2018 : 2018 TaxPub(DT) 1862 (Kol-Trib) and Rajda Ploymers v. Dy. CIT Kolkata, ITA 333/Kol/2017, assessment year 2013-14, dated 8-11-2017.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15

INCOME TAX ACT, 1961

Rule 34(5)

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