Tribunal held that from perusal of documentary evidence placed on record, it was evident that these trust/societies were eligible entities duly notified by Central Government/CBDT under section 35(1)(iii) and under section 35AC. Once assessee had made payments to these trusts/societies, it was neither authorized nor required to check end use of funds by these organizations that were independent in their own accord. The assessee is entitled to deduction. (AY. 2015-16)
Gajraj Tradecom (P.) Ltd. v. DCIT (2023) 200 ITD 474 /102 ITR 80 (SN) (Kol)(Trib.)
S. 35 : Expenditure on scientific research-Shell companies-Reports of Investigation Wing-Exemption cannot be denied on the ground that donations made by assessee were further given to shell companies. 35(1)(iii), 35AC]