Sec. 35 of the Income-tax Act, 1961 - Scientific research expenditure - The appellant, a partnership firm is engaged in the business of trading in shares and it filed its return of income for the assessment year 2012-13 on 29-9-2012 admitting a total income of Rs. 3,83,360/-. The case was selected for scrutiny and assessment was completed under section 143(3) of the Act,1961. The appellant made a contribution of Rs. 1,00,000/- during the year, to M/s.Herbicure Healthcare Bio-herbal Research Foundation, Calcutta, approved to get the contributions under section 35(1)(ii) of the Act. The appellant had claimed the weighted deduction of 175% of contribution paid M/s.Herbicure Healthcare Bio-herbal Research Foundation in the Return of Income. The AO disallowed the claim of Rs. 1,75,000/-. The AO treated the donation as a bogus donation despite the appellant clarifying that the donation is genuine and made directly to the organization. The Assessing officer disallowed the donation by treating it as an accommodation entry despite the facts being otherwise. The AO also disallowed an amount of Rs. 2,89,666/- under section 14A of the Act, treating it as expenses incurred towards earning the exempt income. CIT restricted the amount of disallowance to Rs. 1,78,833/- the amount equal to the exempt income, thereby taxing the entire exempt income.CIT(A) dismissed. Tribunal remitted the issue of disallowance under section 14 A of the Act. High Court dismissed the Appeal of the assessee holding that “the Tribunal had only remanded the matter for re adjudication by the assessment officer after giving opportunity to the appellant. Hence, there is no infirmity in the order passed by the Tribunal”. - KRUPA TRADING CO. V/s ITO - [2020] 271 TAXMAN 166 (MAD)