729/CBDT. - Income Tax - 729/CBDT

INSTRUCTION NO. 729/CBDT Dated : August 6, 1974 Section(s) Referred: 80G Statute: Income - Tax Act, 1961 The question of allowing relief under section 80G of the IT Act, 1961 in cases where donations are made in kind has been considered by the Board. The Bombay High Court has held in the cases of Associated Cement Co.Ltd. and the Blue Star Engg. Co. that donations in kind would also be entitled to the deductions admissible under law similar to donations being received in cash Recently, the Mysore High Court has in the case of Bangalore woollen, Cotton and Silk Mills, Co.Ltd. (91 ITR page 166) also held that donations in kind will be entitled to the deductions under section 80G of the IT Act, 1961. 2. The above decisions have not been accepted, but no appeals have been filed because of the small tax effect. The Board desire that while these decisions may be followed in the Charges of Bombay and Mysore, ITOs working in other charges should not follow these decisions and should not give relief in respect of donations in kind. 3. These instructions may be brought to the notice of all Officers working in the charge.