COSMOS ENGITECH PRIVATE LIMITED,VADODARA, GUJARAT vs. ASST. COMMISSIONER OF INCOME TAX, CIRCLE 1(1)(1), VADODARA, CIRCLE 1(1)(1), VADODARA

Facts

The assessee claimed a deduction of Rs. 52,50,000 under Section 35(1)(ii) for a donation to M/s Bioved Research Society for AY 2015-16. Subsequently, the CBDT withdrew the approval for M/s Bioved Research Society retrospectively from 01.04.2011, noting its involvement in providing accommodation entries. This led to the reopening of the assessment under Section 147/148 and the disallowance of the deduction, which was upheld by the CIT(A).

Held

The Tribunal dismissed the assessee's appeal, affirming that the deduction under Section 35(1)(ii) was not allowable due to the retrospective withdrawal of the donee institution's approval and its fraudulent activities. The Tribunal emphasized that a claim's eligibility under law is paramount, regardless of the assessee's bona fide belief. The contention regarding the denial of cross-examination was also rejected, as the investigation was not aimed at the assessee.

Key Issues

1. Whether the reopening of assessment under Section 147/148 was valid given the retrospective withdrawal of approval for deduction under Section 35(1)(ii). 2. Whether the assessee was entitled to a weighted deduction under Section 35(1)(ii) for a donation to an institution whose approval was withdrawn. 3. Whether the assessee was denied the right to cross-examination.