INCOME TAX OFFICER Vs. K P GOENKA AND SONS LTD
INCOME TAX APPELLATE TRIBUNAL
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S.N. Rotho, Accountant Member -
(1.) THIS appeal has been filed by the department against the order dated 13-11-1980 of the Commissioner (Appeals), relating to the assessment year 1975-76, the previous year of which ended on 31-3-1975.
(2.) The only ground taken in this appeal states that the Commissioner (Appeals) erred in allowing the deduction under Section 80G of the Income-tax Act, 1961 ('the Act'), on a donation made in kind.
The assessee is a limited company. During the previous year under consideration, it made a donation of the premises situated at No. 53, Sir Hariram Goenka Street, Calcutta. The value of the premises was admittedly Rs. 44,124. The ITO refused to allow the deduction under Section 80G on the ground that the donation was in kind. According to him, unless the donation was in cash, it is not eligible for relief under Section 80G. Hence, he declined to give any deduction under Section 80G on the aforesaid donation.
(3.) THE assessee appealed to the Commissioner (Appeals) and contended that the action of the ITO was erroneous. THE Commissioner (Appeals) observed that the assessment year under consideration was 1975-76 during which there was no legal stipulation that the donation should be in cash in order to be entitled for deduction under Section 80G. He also observed that the donation need not have come out of income assessed during the relevant assessment year. Under the circumstances, he directed the ITO to allow the relief under Section 80G after proper verification.;
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