COMMISSIONER OF INCOME-TAX Vs. CANARA BANK

JUDGEMENT

(1.) By this reference under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following question :

(2.) For the assessment year 1977-78, the assessee in all made donations of Rs. 2,65,350 out of which it claimed deduction under Section 80G to the extent of Rs. 1,32,675, being 50 per cent. of the total donations. The Income-tax Officer did not allow the assessee's claim. He restricted the deduction to Rs. 1,00,000 only. The assessee appealed to the Commissioner (Appeals). The Commissioner following the decision of the Andhra Pradesh High Court in Hyderabad Race Club v. Addl. CIT [1979 ]120 ITR185 (AP ), held that the deduction claimed by the assessee must be allowed Accordingly, he held that the assessee was entitled for a farther deduction of Rs. 32,675 under Section 80G.

(3.) The Revenue preferred an appeal to the Appellate Tribunal. The Appellate Tribunal also by following the said decision of the Andhra Pradesh High Court in Hyderabad Race Club's case [1979 ]120 ITR185 (AP ) upheld the order of the Commissioner.