ADDITIONAL COMMISSIONER OF INCOME TAX Vs. ABHAI MALIGAI

JUDGEMENT

(1.) THIS tax case arises out of a reference made by the Income -tax Appellate Tribunal, Madras Bench, under section 256(1) of the Income -tax Act, 1961. The question of law referred for the opinion of this court is this :

(2.) THE claim of the assessee, Messrs. Abhai Maligai, Tiruchirapalli, in the return for the assessment year 1969 -70 for deduction or rebate of Rs. 18, 529 being fifty per cent. of the amount said to have been spent for constructing a museum building in the Southern Prakaram of Sri Ranganathaswami temple at Srirangam and electrification thereof, made under section 80G (2)(b) of the Income -tax Act, 1961, was disallowed on the ground that there is no cash donation to the temple. The Income -tax Officer treated the amount as income in assessing the assessee to tax. On appeal before the Appellate Assistant commissioner the assessee contended that the donation, under the circumstances of the case, does not cease to be so merely because a building was erected with the assessee's money. The assessee further contended that the entire agreement must be taken note of and that in substance there was donation of money with which the building was erected and rebate ought to have been allowed.

(3.) THE sums referred to in sub -section (1)(i) shall be those mentioned in sub -section (2) and clause (b) of the sub -section is :