2008 (1) TMI 381 - HC - Income Tax

Contribution made by the assessee to a school and to a hospital development committee were claimed for benefit under section 80G - assessee s prospects are not advanced by making these contributions - Even though assessee s employees are getting treatment from the hospital and the employees children are students in the school which got the benefit we find the benefit, if at all, is quite remote therefore, assessee is not entitled to the claim u/s 37(1)

Summary

The High Court of Kerala ruled that contributions made by the assessee to a school and hospital development committee were not eligible for deduction under section 37(1) of the Income-tax Act, 1961. The court found that the contributions did not advance the assessee's prospects, and the benefits were deemed remote and not to any specific person. The claim was denied in favor of the Department.