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TMI Blog1985 (11) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 1971-72 being the value of cement donated by the assessee to the Collector of Surat for flood relief and Arya Kanya Mahavidyalaya, respectively ? (2) Whether, on the facts and in the circumstances of the case, and, keeping in view the Circular No. 203, dated July 16, 1976, issued by the Central Board of Direct Taxes, the Tribunal was justified in law in holding that a sum of Rs. 5,000 in each of the years should be disallowed out of advertisement expenses in respect of advertisements given in various souvenirs when there was no link between the assessee's business and the souvenirs ?" The first question is referred at the instance of the Revenue while the second question is referred at the instance of the assessee. The facts l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritable institutions and related to the donations to these institutions and he, therefore, confirmed the Income-tax Officer's order on this point. Similarly, in the second year, the Income-tax Officer disallowed Rs. 13,026, but granted rebate under section 80G of the Act of Rs. 4,630. In appeal, the Appellate Assistant Commissioner disallowed the amount of Rs. 3,256 as being 1/4th of Rs. 13,026 and allowed the amount of Rs. 9,770. The assessee did not prefer any appeal against the same, but the Revenue preferred an appeal against the allowance of Rs. 9,770. It was urged before the Tribunal on behalf of the assessee that the Central Board of Direct Taxes has issued Circular No. 203, dated July 16, 1976, [1976] 104 ITR 52 (statutes) and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the substance of the transaction was to make a donation in cash, the valuation of the cement bags amounting to Rs. 1,051 was entitled to the relief under section 80G of the Act. Mr. Shelat has relied on the subsequent judgment of this court in CIT v. Smt.Dhirajben R. Amin [1983] 141 ITR 875. In the said case it was held that where shares were donated to two charitable trusts and there was no finding that the donations in substance were donations of cash, it was held that the donations were not entitled to deduction under section 80G of the Income-tax Act. On perusal of the Income-tax Officer's order, it is clear that the claim is disallowed under section 80G of the Act for donation given in kind of the Collector, Surat, for flood affect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Assistant Commissioner has simply followed the order for assessment year 1969-70. A similar point was in dispute in respect of the assessment year 1969-70 which ultimately resulted in the judgment in Saurashtra Cement Chemical Industries Ltd. v. CIT [1980] 123 ITR 669 (Guj) wherein it was found that the substance of the transaction was to make a donation in cash and, hence, the assessee was entitled to relief under section 80G of the Act for the value of the cement bags amounting to Rs. 1,051. However, no such finding is given by any of the authorities below in the present case. In the absence of such finding, we do not desire to answer the first question referred to this court. In that view of the matter, the matter will be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we find it difficult to accept the reasoning of the Tribunal to the effect that there is no link apparent between the assessee's business and the souvenirs where the advertisement is given. Normally, when any assessee gives any advertisement in the newspaper, he has no link with the newspaper. Similarly, when the advertisement is given in the souvenir, then there need not be any link between the assessee's business and the souvenir. We, therefore, think that this approach of the Tribunal was an erroneous one. From the reasonings quoted from para 11 of the order of the Tribunal, it appears that the Tribunal has disallowed the sum of Rs. 5,000 as it was for non-business purposes and further also held that the assessee would not be entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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