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TMI Blog1988 (12) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... t length. 3. A few facts first. Assessee, by status an Individual, with previous year ending 31st March derived income from three sources, namely, salary, share income in a firm and other sources during the relevant previous year. A sum of Rs. 50,000 was contributed by him to Shri Navchetana Pragati Mandal (hereinafter referred as 'Mandal') Veerabar, Gujarat and claimed as deduction under section 35CCA of the Act. 4. During the assessment completed by the income-tax Officer under section 143(3) of the Act, the aforesaid deduction was allowed. However, the assessee was served with a notice by the learned Commissioner of Income-tax under section 263 of the Act to show cause as to why the order passed by the Income-tax Officer granting exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the prescribed authority for deriving benefit under section 35CCA. 9. Learned counsel for the appellant contended that so long a payment was made by an assessee from his income derived from business, though as a partner, there was no restriction placed by the statute to its allowability under section 35CCA inasmuch as the deduction is made available to an 'assessee' with no particular qualification. It was also submitted that the mere absence of the eligibility of such an exemption in section 67 of the Act would not make any difference. Controverting these submissions the learned Senior Departmental Representative, contended before us that the Act by section 67 prescribed the mode for the completion of partner's share in the income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from 1-6-78 while section 67 exists on the Statute books from time immemorial. 11. What has to be appreciated is as to whether the persons making payment and the recipient thereof are those which are prescribed by the statute and if we take into consideration the status of the relevant parties, it would be seen that they answer to the statutory requirement. The term 'assessee' defined by section 2(7) of the Income-tax Act, inter alia, means a person by whom any tax or any other sum of money is payable under this Act. By no stretch of imagination it can be contended that the partner of a firm does not fulfil this condition, to be deprived of the statutory benefit granted by section 35CCA. 12. In view of the aforesaid, it cannot be said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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