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Commissioner of Income Tax Vs. Miss. Yeraben R. Amin. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtGujarat High Court
Decided On
Case NumberIT Ref. No. 583 of 1980
Reported in(1993)115CTR(Guj)120
AppellantCommissioner of Income Tax
RespondentMiss. Yeraben R. Amin.
Excerpt:
head note: income tax deduction under s. 80g--donation--payment in kind. held : the expression `any sums paid by the assessee' refers to the amount of money paid by the assessee as donation. therefore, for the purposes of claiming deduction under s. 80g(2)(a), the donation must be a sum of money paid by the assessee and not donation in kind. therefore, the assessee is not entitled to rebate in respect of donation of certain shares to a charitable institution.--h. h. sri rama verma v. cit (1991) 187 itr 308 (sc) followed. conclusion : donation in kind does not qualify for deduction under s. 80g. application : also to current assessment years. citation : income tax act 1961 s.80g - .....circumstances of the case, is right in law in holding that the assessee is entitled to rebate in respect of donation of certain shares of alembic glass industries to arogyavardhini society, a charitable institution ?'2. the assessee claimed deduction in respect of the donation of certain shares. the ito determined the value of this deduction at rs. 3,218 and allowed 55% relief.3. the cit, in exercise of his powers under s. 263 of the act, set aside the said order of assessment and held that the donation made in kind cannot get the benefit of concession.4. the matter was then taken to the tribunal by the assessee and the tribunal allowed the appeal holding that the relief could be granted in respect of donation in kind also. the revenue then moved the tribunal for referring the.....
Judgment:

G. T. NANAVATI, J. :

The Tribunal has referred the following question under s. 256(1) of the IT Act, 1961 to this Court for its opinion :

'Whether the Tribunal, on the facts and the circumstances of the case, is right in law in holding that the assessee is entitled to rebate in respect of donation of certain shares of Alembic Glass Industries to Arogyavardhini Society, a charitable institution ?'

2. The assessee claimed deduction in respect of the donation of certain shares. The ITO determined the value of this deduction at Rs. 3,218 and allowed 55% relief.

3. The CIT, in exercise of his powers under s. 263 of the Act, set aside the said order of assessment and held that the donation made in kind cannot get the benefit of concession.

4. The matter was then taken to the Tribunal by the assessee and the Tribunal allowed the appeal holding that the relief could be granted in respect of donation in kind also. The Revenue then moved the Tribunal for referring the abovestated question to this Court.

5. The question whether donation in kind is also entitled to the relief under s. 80G is now concluded by the decision of the Supreme Court in H. H. Sri Rama Verma vs . CIT : [1991]187ITR308(SC) , wherein it has been held that the expression any sums paid by the assessee refers to the amount of money paid by the assessee as donation. Therefore, for the purposes of claiming deduction from income-tax under s. 80G(2)(a), the donation must be a sum of money paid by the assessee and not donation in kind. Following that judgment, we answer that question in the negative, i.e., in favour of the Revenue and against the assessee.

6. In the result, the question is answered in the negative, that is, in favour of the Revenue and against the assessee. No order as to costs.


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