Case Law Details
PCIT Vs M/s Thakkar Covidbhai Ganpatlal HUF (Gujarat High Court)
The Expenses incurred on a Donation made through Banking Channel used for Scientific Research will be allowed to the assessee as Herbicure Foundation has confirmed that the amount has been utilized for scientific research and there is no evidence that the same is returned back in cash.
In the given case, the Assessing Officer was of view that the donation given to one M/s. Herbicure Healthcare Bio-Herbal Research Foundation (for short ‘the Herbicure’), was not a genuine research foundation. The Assessing Officer, relied upon the survey under taken under Section 133A of the Act, conducted by the DDIT (Investigation, Kolkata) at Herbicure and during the course of the survey it was found that the donor/beneficiaries in connivance with Herbicure with the active help of brokers, entry operators/bogus billers were engaged in bogus donation syndicate and the donations were returned back to the donors in lieu of commission. Therefore, the amount claimed under Section 35(1)(ii) was disallowed by the Assessing Officer.
But, the assessee proves that the Expenses incurred on a Donation made through Banking Channel and also found that the Herbicure Foundation has confirmed that the amount has been utilized for scientific research. Accordingly, the onus placed upon the assessee was discharged.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
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