RAMDAS MANEKLAL GANDHI Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this writ petition, the petitioner seeks to challenge the notice dated 29th March, 1988 issued by the Income-tax Officer under section 148 of the Income-tax Act, 1961 ("act") for the assessment year 1985-86. The case of the petitioner is that the condition precedent for the issuance of the notice under section 148 of the Act does not exist in this case and hence the notice is without jurisdiction.

(2.) THE respondents have filed affidavit wherein they have given the reason for issue of the notice under section 148 in the instant case. The reason shown is that the assessee had claimed deduction under section 35-CCA of the Act in respect of donation of Rs. 1,00,000/- made to the Society for Integral Development which was approved by the prescribed authority at that time. Later, the certificate issued to the said society was withdrawn by the prescribed authority on 3rd March 1987 with retrospective effect from 13th December 1982. The impugned notice under section 148 of the Act was issued to disallow the deduction granted to the assessee under section 35-CCA of the Act, as according to the Income-Tax Officer, the assessee was not entitled to deduction in view of the withdrawal of the certificate granted to the Society for Integral Development by the prescribed authority with retrospective effect from 13th December 1982. The case of the respondents is that in view of the withdrawal of the certificate granted to the above Society under section 35-CCA of the Act, the deduction given to the petitioner under that section in respect of the donation of Rs. 1,00,000/- made to the said Society was not an allowable deduction and the notice has been issued to withdraw the allowance wrongly made.

(3.) WE have heard the learned Counsel for the parties. There is no dispute about the fact that the assessee had made a donation of Rs. 1,00,000/- to the Society for Integral Development. It is also the admitted position that the prescribed authority had issued certificate to the above Society to the effect that the programme of rural development had been approved by it before the 1st day of March 1983 and that certificate was furnished by the assessee in support of its claim for deduction under section 35-CCA of the Act and on that basis the assessee was entitled to get deduction which was allowed by the assessing officer in the original assessment for the assessment year 1985-86. The only case of the respondents is that the assessee is not entitled to deduction under section 35-CCA of the Act in view of the withdrawal of the certificate issued by the prescribed authority to the concerned Society with retrospective effect from 13th December 1982. The withdrawal as made on 3rd March 1987.