  We consider the theory of Kondo effect and Fano factor energy dependence for
magnetic impurity (Co) on graphene. We have performed a first principles
calculation and find that the two dimensional $E_1$ representation made of
$d_{xz},d_{yz}$ orbitals is likely to be responsible for the hybridization and
ultimately Kondo screening for cobalt on graphene. There are few high symmetry
sites where magnetic impurity atom can be adsorbed. For the case of Co atom in
the middle of hexagon of carbon lattice we find anomalously large Fano
$q$-factor, $q\approx 80$ and strongly suppressed coupling to conduction band.
This anomaly is a striking example of quantum mechanical interference related
to the Berry phase inherent to graphene band structure.
