Donations Must be Made to Research Institutes Registered u/s 35(1)(ii): ITAT Disallows 1.05 Cr Deduction

ITAT disallowed ₹75 lakh research deduction claims because donations were made to institutes lacking Section 35(1)(ii) registration. The tribunal strictly enforced the registration requirement, rejecting arguments about the donee's substantive research credentials. This technical compliance is crucial for Section 35 benefits, regardless of the research's actual quality or intent. The ruling reminds taxpayers to verify donee eligibility before claiming deductions. However, it also highlights potential gaps when worthy research organizations haven't completed registration formalities. The government may need to streamline the approval process to avoid discouraging genuine research funding while maintaining oversight.