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TMI Blog1977 (11) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in granting interest under section 214(1) to the assessee for assessment year 1972-73 on the excess amount paid which was not in accordance with the provisions of sections 207 to 213 of the Income-tax Act, 1961 ? " We propose to deal with question No. 2 first. Pursuant to notice issued by the ITO under s. 210 of the Act, the assessee had made diverse payments by way of advance tax on June 29, 1971, September 20, 1971, December 21, 1971, and March 17, 1972. According to counsel for the Commissioner, the last mentioned payment, viz., the one made on March 17, 1972, was beyond the prescribed date which was March 15, 1972. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government Poly Technical Institute at Aundh which it did by arranging a function at its premises. In its assessment for the year under consideration the assessee claimed that deduction under s. 80G of the Act be allowed to it in respect of the said machine donated by it to the said institute. The ITO disallowed the claim of the assessee by observing that s. 80G refers to sums paid and the expression " sums paid " cannot include donation in kind. Being aggrieved by this disallowance the assessee went in appeal to the AAC. The AAC was of the view that the entire cost of the machine donated to the Poly Technical Institute at Aundh should be allowed as publicity and advertising expenses and accordingly he directed the ITO to allow the cost of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate amount of Rs. 6,600 for manufacturing the 'pilot kiln' and in the second resolution it was clearly indicated that it was this pilot kiln which was to be presented after manufacture to the University, Department of Chemical Technology. Before the High Court the counsel on behalf of the revenue had contended that the language of s. 15B of the Indian I.T. Act, 1922, was clear and that it only permitted deduction of the sums (i.e., cash) paid by the assessee as donations. The court held that such a submission was technical in the extreme and that if one were to look to the substance of the transaction, there would be no doubt that what the assessee-company gave to the University of Bombay was ultimately a sum of Rs. 6,600. The court found t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s at various places, and to that extent there is no change in the language as far as the basic expression " sums paid " which arises for consideration. Mr. Joshi then very strenuously urged that the Tribunal had not properly understood the decision of the Bombay High Court in Associated Cement Company's case [1968] 68 ITR 478. According to him, in Associated Cement Company's case, the High Court had given a finding that what the assessee had handed over to the University, Department of Chemical Technology, was the aggregate amount of Rs. 6,600 and it was because of this finding that the claim for deduction under s. 15B was upheld. He referred us to a decision of the Andhra Pradesh High Court in CIT v. Amonbolu Rajiah [1976] 102 ITR 403, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the Bombay High Court in Associated Cement Company's case [1968] 68 ITR 478, but the learned judges of the Andhra Pradesh High Court. In Associated Cement Company's case [1968] 68 ITR 478 (Bom), the Division Bench of the Bombay High Court had expressly observed at a number of places in the judgment and found that the assessee had spent Rs. 6,600 out of its own coffers, prepared the kiln and then handed over the kiln to the university pursuant to the earlier request made by the university for the donation of the kiln. It is impossible to read Associated Cement Company's case [1968] 68 ITR 478 (Bom) and to hold that it was found as a fact that Rs. 6,600 were handed over to the university. The court, however, observed that the substance o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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