DCIT Vs Maco Corporation India (P) Ltd. (ITAT Kolkata)
There is absolutely no provision for withdrawal of recognition under section 35(1)(ii) of the Act. Hence, the so-called withdrawal of recognition under section 35(1)(ii) in the hands of the payee organizations could not affect the rights and interests of assessee herein for claim of weighted deduction under section 35(1)(ii).
FULL TEXT OF THE ITAT JUDGMENT
1. This appeal by the Revenue arises out of the order of the Learned Commissioner of Income Tax(Appeals)-4, Kolkata [in short the ld CIT(A)] in Appeal No.11123/CIT(A)- 4/Circle-12(1)/16-17 dated 27.12.2016 against the order passed by the DCIT, Circle-12(1), Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 22.09.2016 for the Assessment Year 2014-15.
2. The only effective issue to be decided in this appeal is as to whether the ld CITA was justified in deleting the disallowance made u/s 35(1)(ii) of the Act in the sum of Rs 4,37,50,000/- in the facts and circumstances of the case.
3. The brief facts of this issue is that the assessee is a private limited company engaged in the business of import and export of machinery spares, equipment & component and project execution work. The return of income for the Asst Year 20 14-15 was filed by the assessee on 30.9.20 14 disclosing total income of Rs 35,46,93,990/-. The ld AO observed that the assessee claimed donation of Rs 4,37,50,000/- (being 175% of Rs 2,50,00,000/-) u/s 35(1)(ii) of the Act for the scientific research organization donation made as under:-
