M C DALAL & CO,CHENNAI vs. DCIT, NCC-5, CHENNAI

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -5, Chennai, dated 28.09.2018 and pertains to assessment year 2014-15.

Shri D. Anand, the Ld.counsel for the assessee, submitted that the donation made by the assessee to M/s Herbicure Healthcare Bio Herbal Research Foundation was claimed as deduction under Section 35(1)(ii) of the Income-tax Act, 1961 (in short 'the Act'). However, according to the Ld. counsel, the Assessing Officer disallowed the claim of the assessee which was confirmed by the CIT(Appeals). Placing reliance on the order of this Tribunal in assessee's own case for the assessment year 2013-14, the Ld.counsel submitted that when the very same issue came before this Tribunal, this Tribunal remitted back the matter to the file of the Assessing Officer.

On the contrary, Shri AR.V. Sreenivasan, the Ld. Departmental Representative, submitted that the donation made by the assessee to M/s Herbicure Healthcare Bio Herbal Research Foundation is actually not donation. It is only an accommodation entry. Therefore, according to the Ld. D.R., the donation made to M/s Herbicure Healthcare Bio Herbal Research Foundation, Kolkata is not eligible for deduction under Section 35(1)(ii) of the Act.

We have considered the rival submissions on either side and perused the relevant material available on record. The assessee claims deduction under Section 35(1)(ii) of the Act in respect of the donation said to be made to M/s Herbicure Healthcare Bio Herbal Research Foundation. The Assessing Officer by placing reliance on the material collected by the Investigation Wing of the Department at Kolkata, disallowed the claim of the assessee which was confirmed by the CIT(Appeals) for the assessment year 2013-14.

In the result, the appeal filed by the assessee is allowed for statistical purposes.