COMMISSIONER OF INCOME TAX Vs. PRAKASH CO

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, Allahabad Bench, Allahabad, has referred the following question of law for the opinion of this court under Sub-section (1) of Section 256 of the Income-tax Act, 1961 (for short "the Act") :

(2.) We have heard learned standing counsel for the Revenue. No one has appeared for the respondent-assessee although the case was taken up after the list was revised.

(3.) In the assessment proceedings relevant to the assessment year 1974-75 which is in dispute, the assessee claimed deduction of Rs. 34,012 from its taxable income under the head "Charity and donations" which included an amount of Rs. 15,000 paid as a donation to an educational institution, called Shri Dwarka Das Vishnu Dayal Balika Vidyalaya, Malsisar, Rajasthan. The Income-tax Officer, however added back the entire amount of Rs. 34,012 to the income of the assessee observing in a cursory manner, that the assessee had not fulfilled the conditions laid down under Section 80G of the Act. It was not known whether the parties to whom the donations are alleged to have been made, were approved by the Central Government and in any case in the absence of verifiable and complete particulars, relief under Section 80G could not be granted. The assessee appealed against the aforesaid disallowance amongst other items to the Appellate Assistant Commissioner of Income-tax. However, the assessee restricted its claim under the head "Donations" to the amount of Rs. 15,000 which was paid to the said institution, claiming that it was entitled to deduction as contemplated under Section 80G of the Act in respect of the said donation. The appellate authority, however, did not decide the contention on the merits and sustained the disallowance on the ground that in the memorandum of appeal no specific ground was taken.