1993 (8) TMI 106 - AT - Income Tax

Summary

Issues:
Disallowance of deduction under section 80G for payment to Manipal Institute of Technology Trust.

Analysis:
The appeal was against the disallowance of a deduction under section 80G of the Income-tax Act, 1961 for a payment made to Manipal Institute of Technology Trust. The disallowance was based on two grounds: the Exemption Certificate was in a different name, and the payment was for admitting the assessee's son to the institute.

The assessee argued that there was no mistake in obtaining the Exemption Certificate and that the donation was made to support charity, regardless of the incidental admission of the assessee's son. The counsel referred to the dictionary meanings of "donation" and "benevolent" and cited a Supreme Court case for support. Alternatively, it was suggested that at least 50% of the claim should be allowed based on the Apex Court's ruling on professional college admissions.

The Departmental Representative contended that the payment did not qualify as a donation under section 80G, citing a Supreme Court case in support.

After considering the arguments and evidence presented, the tribunal found that the payment was specifically for admitting the assessee's son, as indicated in the receipt. The tribunal noted that a donation involves a voluntary transfer without consideration, which was not the case here. The tribunal concluded that the payment did not meet the criteria of a donation for charitable purposes as required by section 80G. Therefore, the deduction was disallowed, and the appeal was dismissed.