COMMISSIONER OF INCOME TAX Vs. GAJ SINGH

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated May 6, 1982, in respect of the assessment year 1971-72 under Section 256(1) of the Income-tax Act, 1961 :

(2.) THE brief facts of the case are that Gaj Singh, ex-Ruler of Jodhpur, had made donation in kind of certain immovable properties to charitable and religious trusts and claimed deduction under Section 80G of the Income-tax Act in respect of the value thereof as donations. THE Income-tax Officer disallowed the deduction under Section 80G of the Income-tax Act as in respect of the donation made in kind the deduction was not allowable and only the cash donation was allowable. THE Commissioner of Income-tax (Appeals), however, allowed the claim of the assessee and the order of the Commissioner of Income-tax (Appeals) was confirmed by the Income-tax Appellate Tribunal. THEre was conflict of opinion in different High Courts on the interpretation of Section 80G. In the cases of CIT v. Associated Cement Co. Ltd. [1968] 68 ITR 478 (Bom) ; CIT (Addl) v. Abhai Maligai [1978] 113 ITR 737 (Mad) and CIT v. Bangalore Woollen, Cotton and Silk Mills Co. Ltd, [1973] 91 ITR 166 (Mys), the courts have decided the matter in favour of the assessee while in the cases CIT v. Gopal Krishna Singhania [1980] 121 ITR 260 (All) ; CIT v. Amonbolu Rajiah [1976] 102 ITR 403 (AP) (sic) and CIT v. Smt. Dhirajben R. Amin [1983] 141 ITR 875 (Guj), the other High Courts have taken the view in favour of the Revenue. THE matter has now been settled by the decision of the apex court in the case of H. H. Sri Rama Verma v. CIT [1991] 187 ITR 308, wherein it was held that as Section 80G(2)(a) contemplates only cash amount of money as donation and it does not refer to any donation made in kind. In the light of the decision of the apex court in the case of H. H. Sri Rama Verma [1991] 187 ITR 308, we are of the opinion that the Tribunal was not justified in holding that the assessee was entitled for deduction under Section 80G of the Income-tax Act in respect of the donations made in kind.