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TMI Blog1990 (8) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... its from India to its U. K. office was not an allowable deduction in its income-tax assessment for the assessment year 1977-78 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the surtax liability under the Companies (Profits) Surtax Act, 1964, for the assessment year 1977-78 was not an allowable deduction in the income-tax assessment for the said assessment year ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the deduction under section 80G of the Act was allowable from 100 per cent. of the income from tea business and not from the gross total income arrived at after allocation of 40 per cent. of the income from tea business ? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted its profits to its head office in the U. K. periodically for payment of dividends to the foreign shareholders. Any surplus remaining after such distribution in the United Kingdom was invested. During the relevant previous year, by reason of fluctuations in the rate of exchange, the assessee suffered a loss in the sense that it had to remit an extra amount for payment of such dividend. The assessee claimed deduction of the said amount from its total income. The Income-tax Officer disallowed the claim. On appeal, the Appellate Assistant Commissioner held that the loss arising out of the change in the rate of exchange in the remittance of the profit was not an allowable business expenditure. The Tribunal upheld the decision of the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... govern the instant case. In that view of the matter, the first question is answered in the negative and in favour of the assessee. So far as the third question is concerned, the facts are that the Commissioner (Appeals ) held that 50 per cent. of the donation of Rs. 5,450 was deductible under section 80G of the Income-tax Act from 100 per cent. of the business income instead of the gross total income computed after allocation of 40 per cent. of the business income. On a perusal of the order of the Commissioner (Appeals), it appears that the Commissioner (Appeals) has not dealt with this issue in computing the total income of the assessee-company. The company, however, raised this issue as an additional ground before the Commissioner (App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed. Our attention has been drawn to the circular of the Board where it has been stated as follows : "318. Donation to Prime Minister's National Relief Fund [sub-clause (iiia) of clause (a) of sub-section (2)]. Money order coupons to be treated as sufficient evidence of donation. Under the provision of section BOG deduction is allowable as spelt out in the said section on the sums paid by an assessee to the Prime Minister's National Relief Fund. With a view to helping the donors to remit amounts of the donations to the Fund, the money orders addressed to the Prime Minister's National Relief Fund have been exempted from payment of money order commission. Taking advantage of this facility a large number of persons have sent their contri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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