COMMISSIONER OF INCOME TAX Vs. GOPAL KRISHNA SINGHANIA

JUDGEMENT

(1.) DURING the accounting year relevant to the assessment year 1971-72, the assessee-HUF donated some shares to Smt. Sulochana Devi School Trust, Bombay. In the assessment proceedings, the asscssee claimed relief under Section 80G of the I.T. Act, This relief was disallowed. The assessee went up in appeal. The AAC allowed the appeal in part. Aggrieved, the department filed an appeal before the Tribunal. The Tribunal, relying upon the decisions of the Bombay High Court in CIT v. Associated Cement Co, Ltd. [1968] 68 ITR 478 and of the Mysore High Court in CIT v. Bangalore Woollen, Cotton and Silk Mills Co. Lid. [1973] 91 ITR 166, held that the reliefs under Section 80G were not confined to cash donations but included donations in kind as well and dismissed the appeal.

(2.) AT the instance of the department, the Tribunal has referred the following question for our opinion :

(3.) THIS circular was withdrawn by the Board on January 17, 1964. Referring to this circular the Mysore High Court observed that if the assessee had given a cheque as donation and for the same amount prepared a bill of sale, it could have obtained the benefit of Section 88(i) (which is equivalent to Section 80G).