Ruma Pal, J. - (1.) The short point involved in this writ application is whether a donor who has made a donation to an institution for carrying out rural development programmes and has claimed deduction on such basis can he denied deduction on the ground that the money as donated was not in fact utilised by the donee for the purposes for which they were given.
(2.) The petitioner has donated two sums to two organisations both of which had been approved by the prescribed authority under the provisions of Section 35CCA of the Income-tax Act, 1961.
(3.) The payments were made in 1982. The petitioner was assessed for the assessment year 1983-84. The petitioner's claim for deduction under Section 35CCA was allowed by the Income-tax Officer in the assessment order. The Commissioner then sought to revise the assessment under Section 263 on the following grounds ; "The Income-tax Officer allowed incorrectly deduction amounting to Rs. 4,00,000 under Section 35CCA on account of payment of Rs. 2 lakhs each to Messrs. Jayasree Gram Vikash Trust and Jagannath Rural Development Kendra, in spite of the fact that the conditions laid down in the Board's Circular No. 240 (see [1979] 117 ITR (St.) 17) dated May 17, 1978, have not been fulfilled by the above two agencies in regard to rural development.";