COMMISSIONER OF INCOME TAX Vs. LUKWAH TEA COMPANY

JUDGEMENT

(1.) THE following question of law has been referred to this Court by the Tribunal under s. 256(1) of the IT Act, 1961 :

(2.) THE assessment year involved in this reference is the asst. yr. 1978-79 for which the relevant period of account is the year ending on 31st Dec., 1977. In this case the assessee's gross total income before deduction under s. 80G for the said assessment year amounted Rs. 23,27,649 and the assessee company made donations during the said period aggregating to Rs. 3,82,258. THE assessee claimed that 50 per cent of the donation, amounting to Rs. 1,66,129 should be deducted from the aforesaid gross total income. THE ITO did not agree with the contention of the assessee. According to him the relief admissible under s. 80G was limited to 50 per cent of 10 per cent of the gross total income of the assessee. On appeal, the CIT(A) reversed the order of the ITO. THEn the Department brought the matter before the Tribunal. THE Tribunal after examining the scheme of s. 80G came to the following conclusion :

(3.) WE respectfully differ with the view expressed by the Karnataka High Court inasmuch as, in our view, this is contrary to the plain meaning of the section itself we agree with the view expressed by the Andhra Pradesh High Court.