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TMI Blog1998 (1) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the donation of Rs. 15,000 made to Sri Dwarka Das V. D. Balika Vidyalaya Malsisar?" We have heard learned standing counsel for the Revenue. No one has appeared for the respondent-assessee although the case was taken up after the list was revised. In the assessment proceedings relevant to the assessment year, 1974-75 which is in dispute, the assessee claimed deduction of Rs. 34,012 from its taxable income under the head "Charity and donations" which included an amount of Rs. 15,000 paid as a donation to an educational institution, called Shri Dwarka Das Vishnu Dayal Balika Vidyalaya, Malsisar, Rajasthan. The Income-tax Officer, however added back the entire amount of Rs. 34,012 to the income of the assessee observing in a cursory ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) of sub-section (5) of section 80G of the Act. On behalf of the Revenue, the claim was resisted before the Tribunal on the ground, inter alia, that since no certificate was issued by the concerned Commissioner of Income-tax in favour of the donee institution, treating it as a charitable institution, the assessee was not entitled to claim, deduction as contemplated under the provisions of section 80G of the Act. The Income-tax Appellate Tribunal, however, allowed the claim of the assessee in the following words : "To the query raised by us, neither the assessee nor the Revenue could show us any provision under the Income-tax Act, 1961, whereby an approval of the Central Government is required in respect of the deduction claimed under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or . . ." Sub-section (5) of section 80G amplifies the provisions of section 80G(2)(a)(iv) and sets out the conditions under which donations covered under section 80G(2)(a)(iv) shall enjoy benefit of section 80G. It provides that section 80G applies to any institution or fund referred to under sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the conditions specified in that sub-section, namely :--- "(i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 or clause (22) or clause (22A) or clause (23) or clause (23C) of section 10; (ii) the instrument und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the donee institution should be exempt from tax under sections 11 and 12 where such institution derives any income, or such income was not liable to be included in its total income, amongst others, under clause (22) of section 10 of the Act. The expression "charitable purpose" is defined in section 2(15) as including relief of the poor, education, medical relief, and the advancement of any other object of general public utility not involving the carrying on of any activity for profit. Section 10(22) of the Act is to the following effect : "10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included---. . . (22) any income of a university or other educ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... donee institution recognising it as charitable institution and, therefore, the provisions of section 80G were not available to the assessee. Learned standing counsel fairly conceded that at the relevant time there was no provision under the Act or the rules framed thereunder which required the approval of the Central Government or, for that matter, of any other authority or production of an exemption certificate of the donee institution, etc., before a claim under section 80G could be allowed. In our opinion, an assessee can legitimately claim deduction under section 80G on showing that the donee fulfils all the conditions stated in sub-section (5) read with sub-section (2)(a)(iv) of section 80G of the Act. On the facts of the case, we find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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