Decided on January 22,1982



T.D. Sugla, President - (1.) THE assessee is a company and the proceedings relate to its assessment for the assessment year 1974-75. During the previous year, the assessee donated a sum of Rs. 1,00,000 to a trust known as "Vishwamangal Trust" (hereinafter referred to as "the trust"). Deduction under Section 80G of the Income tax Act, 1961 ("the Act"), was claimed in respect thereof and allowed by the ITO while completing the assessment under Section 143(3), read with Section 144B, of the Act. Subsequently, the Commissioner, after allowing the assessee an opportunity of being heard, passed an order under Section 263 of the Act, inter alia, directing the ITO to withdraw the deduction granted to the assessee under Section 80G in respect of the aforesaid donation of Rs. 1,00,000 to the trust.
(2.) Aggrieved by the aforesaid order of the Commissioner, the assessee has come up in appeal. There are a number of grounds in the appeal memo, particularly, against the other directions given by the Commissioner to the ITO. However, at the time of the hearing of the appeal before the Division Bench on 18-3-1981 all other grounds were specifically given up. The ground that survived for consideration in this appeal, thus, is- That the learned Commissioner erred in disallowing the relief allowed to the company in respect of donation to Vishwamangal Trust. This question, it is common ground, had come up for consideration before the Tribunal in the case of New India Sugar Mills Ltd., and in some other cases, and has been decided in favour of the assessee. However, the Division Bench, which* heard the appeal originally, felt that the Tribunal's decision in those cases, perhaps, required reconsideration. Reference was made to the President, ITAT, for constituting a larger bench under Section 255(3) which was done. This is how the appeal has come up before the Special Bench.
(3.) BEFORE proceeding with the appeal, it may be stated, in fairness to Shri R.N. Bajoria, the learned counsel for the assessee, that he requested the Special Bench to verify from the records whether the other grounds were really given up by the assessee before the Division Bench. We informed him that there was such a note in the file and he readily agreed to confine his submissions to the aforesaid surviving question only.;

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