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Issues involved: Interpretation of relief under section 80G of the Income Tax Act for donations in kind.
Summary: The High Court of Allahabad considered a case where an assessee-HUF donated shares to a trust and claimed relief under section 80G of the Income Tax Act for the assessment year 1971-72. The Tribunal held that relief under section 80G is not limited to cash donations but includes donations in kind as well, based on precedents from the Bombay and Mysore High Courts. The Tribunal referred the question of the admissibility of relief for donations in kind to the High Court. The High Court referred to a previous decision where it was held that donations of statues or gates to a local authority do not fall under section 80G, emphasizing that the donation should be in cash to attract the section. This view was supported by a decision of the Andhra Pradesh High Court. The assessee relied on a Mysore High Court decision involving a donation of cloth, but the High Court noted that the specific facts of that case were not applicable. The High Court concluded that the assessee was not entitled to claim exemption for the donation under section 80G. The answer to the question was in the negative, in favor of the department. Costs were awarded to the CIT.
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