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TMI Blog2016 (12) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... t up Pune Branch Building Fund and, the Institute has received approval under Section 80 G of the Income Tax Act, 1961 ref. O.DIT (E) 2005-06 T. 1041/1001 valid up to 31st March, 2009. Assessee firm has major presence in Pune around half of its compliance clientele and 30-40% of the revenues are generated from Pune. The Hon’ble Supreme Court in the case of S A BUILDERS (2006 (12) TMI 82 - SUPREME COURT ) reiterated the proposition that the expression "commercial expediency" is an expression of wide import and includes such expenditure as a prudent businessman incurs for the purpose of business. The expenditure may not have been incurred under any legal obligation, but yet it is allowable as a business expenditure if it was incurred on gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch 27, 2009. The Firm had claimed the aforesaid payment as an expenditure incurred wholly and exclusively for the purposes of the profession and not as a donation deductible u/s - 80G. 5. The learned Assessing Officer has taken a view that it is in the nature of a donation; provisions of s 80G are specific and will override those of section 37(1) which are general in nature. He further held that the assessee has not proved that donation was made wholly and exclusively for the purpose of the firm. 6. By the impugned order CIT(A) confirmed the action of the AO against which assessee is in further appeal before us. 7. We have considered rival contentions and carefully gone through the orders of the authorities below. We have deliber ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and benefit of the members and particularly members and aspiring students based in Pune. 8. We also found that for the said purpose the Pune Branch had set up Pune Branch Building Fund and, the Institute has received approval under Section 80 G of the Income Tax Act, 1961 ref. O.DIT (E) 2005-06 T. 1041/1001 valid up to 31st March, 2009. Assessee firm has major presence in Pune around half of its compliance clientele and 30-40% of the revenues are generated from Pune. Pune branch of the firm presently employs more than 75 personnel including Chartered Accountants, Semi Qualified and Articles. The firm and its partners have since been exposed to greater exposure and participation in seminars, symposiums etc., By donating the amount, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that any contribution made by the assessee to a fund which is directly connected or related to the carrying on of the assessee's business or which results in benefit to the assessee's business, has to be regarded as a deduction allowable under section 37. The Madras High Court held that the ratio decidendi of this decision would apply to similar contributions made to non-public welfare funds. The Madras high Court held that activities of the Chamber of Commerce are closely linked with the welfare of the corporate entities who are members therein and whose interest are taken care by the Chamber of Commerce. 10. In Rupsa Rice Mills (104 ITR 249) the Orissa High Court upheld claim for deduction of a sum donated for construct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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