COMMISSIONER OF INCOME TAX SHILLONG Vs. CHOTATINGRAI TEA

JUDGEMENT

(1.) These appeals have been preferred from the decision of the Gauhati High Court in which the High Court has set aside the order passed by the Income Tax Appellate Tribunal, gauhati (for short 'the Tribunal') remanding the matter to the assessing officer for the purpose of determining whether the assessees who had, admittedly, fulfilled the conditions for claiming deduction under section 35cca of the Income Tax Act (for short 'the Act') could subsequently become disentitled to said deduction by reason of subsequent events. Section 35cca provides:

(2.) It is not in dispute that the assessees had made donations to the society for integratal development, Calcutta which had as its object the undertaking to carry out approved programmes of rural development. The society had granted a certificate to the assessee which had also been approved by the prescribed authority.

(3.) According to the revenue authorities the assessees were not entitled to deduction as claimed despite the aforesaid because subsequently the approval granted by the prescribed authority was withdrawn with retrospective effect. It was also alleged that the assessees had received back the donation which had been made by them to the society. When the matter came up before the tribunal at the instance of the assessees, the tribunal found, as a matter of fact that the assessee had fulfilled all the conditions under section 35cca of the Act for grant of deduction thereunder. The tribunal also found that the assessees' position could not be affected by any subsequent withdrawal of the certificate granted by the prescribed authority under section 35cca but found that there was no evidence in support of the revenue's case that the assessees had received back the amount donated by them to the society. However, the matter was remanded to the assessing officer for fresh disposal for the purpose of determining whether the money had in fact been utilised for an approved programme. Pursuant to the directions of the high Court the following questions were referred under section 256 (2) of the Act. (1) Whether on the facts and in the circumstances of the case, the tribunal having held that the assessees have fulfilled all conditions laid down in section 35cca of the Income Tax act, 1961 read with rule 6aaa of the Income tax Rule for deduction of the amount donated to the approved society, which had not come back to the assessee soon after or later on in some form or the other, that tribunal was justified in law in restoring the matter to the assessing officer on the reasons and grounds given in the order passed on appeal (2) Whether on the facts and in the circumstances of the case, and in view of the findings of facts recorded by the tribunal on questions of facts arising for decision, the tribunal was justified in law in holding that the entitlement of the assessee for claiming deduction of the amount donated to the approved society would depend upon the utilisation of such fund by the approved society in the approved programme before the date specified in the section and on this basis only restore the matter to the assessing officer -