H H RAMA VERMA Vs. COMMISSIONER OF INCOME TAX ERNAKULAM
SUPREME COURT OF INDIA (FROM: KERALA)
H H Rama Verma
Commissioner Of Income Tax Ernakulam
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(1.)This appeal by certificate under S. 261 of the Income Tax Act, 1961 and under Article 133 of the Constitution is directed against the judgment of a division bench of the High court of Kerala dated 11/04/1975 holding that the appellant was not entitled to benefit of section 80-G of the Income Tax Act, 1961 in respect of the donations made by him in the previous years,
(2.)The appellant is an assessee under the Income Tax Act, he donated equity shares of Nirlon Synthetic Fibres and Chemicals Ltd. having face value of Rs. 12,50,000. 00 to each of two trusts, namely, H. H. Maharani Setu Parvati Bayi Trust and H. H. Princess Lakshmi Bayi Trust. The total donation, according to the assessee, amounted to Rs. 25,00,000. 00. In the assessment year 1968-69, the assessee claimed exemption under section 80-G of the Act in respect of the aforesaid donations made by him to Charitable Trusts. The Income Tax Officer rejected the claim. On appeal the Appellate Assistant Commissioner directed the Income Tax officer to call for the relevant receipts and if satisfied with the admissibility of the deduction claimed to grant the deduction according to law. The revenue preferred appeal before the Appellate tribunal. The tribunal held that the expression "sums" occurring in S. 80-G did not include any donation made in kind in the shape of share, it therefore set aside the order of the Appellate Assistant Commissioner. On reference, the High court agreed with the view taken by the tribunal. Hence this appeal.
(3.)The relevant provisions of S. 80-G, as applicable to the instant case (as it then existed) are as under:
"80-G.deduction in respect of donations to certain funds, charitable institutions etc. (1 In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section, an amount equal to,-
(A) where the assessee is a company, 50 per cent; and
(B) in the case of any other assessee, 55 per cent, of the aggregate of the sums specified in Ss. (2.
(2 The sums referred to in Ss. (1 shall be the following, namely-
(A) any sums paid by the assessee in the previous year as donations to-
(I) to (iii) * * *
(Iv) any other fund or any institution to which this section applies; or"
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