9911796707
TMI Blog1994 (10) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... this ground. 3. As regards ground No. (ii), the facts are that the assessee made donation of Rs. 8 lacs to Swasthi Yog Pratisthan Charitable Trust, Miraj (Maharashtra) towards a Scientific Research Programme approved by the Prescribed Authority, under section 35(2A) of the Income-tax Act, 1961. The said programme was approved for a period of five years from 6-2-1981 to 5-2-1986 by Notification dated 27-3-1981. At the time when the said programme was approved, the trust was also recognised under section 35(1)(ii) of the Act vide Notification No. 3409, dated 26-5-1980. However, when the donation was actually made, i.e., Rs. 6 lacs on 7-2-1984 and Rs. 2 lacs on 24-2-1984, recognition under section 35(1)(ii) given to the trust had lapsed. The Assessing Officer disallowed the claim of the assessee for weighted deduction under section 35(2A) on the ground that when the donation was actually made, the trust had lost its recognition under section 35(1)(ii) of the Act. 4. Sri D.K. Singh, the learned Departmental Representative, vehemently argued for the revenue that in order to avail of the weighted deduction of 133 1/3 per cent under section 35(2A) of the Act, it was imperative that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he fact, that the institutions other than scientific research association, university or college recognised under section 35(1)(ii), shall also be considered under section 35(2A) of the Act. 6. In the alternative, Sri Patil Suggested that even if recognition under section 35(1)(ii) was a precondition, at least at the time when the research programme was approved under section 35(2A) of the Act, the trust did have recognition under section 35(1)(ii) and the said recognition at the time of approving the programme was sufficient. In support of this contention, he further argued that the recognition under section 35(1)(ii) of the Act was given for a period of three years at a time whereas the duration of the approval under section 35(2A) of the Act depended on the nature of the programme undertaken by the institution. In further support of this contention, he drew strength from Board's Circular No. 294, dated 27-2-1981 wherein at para 2, the following has been mentioned : "The Board have been advised, that the approval under section 35(2A) is of the 'research programme' and not of the sponsors and, therefore, any other person than the original sponsors making payment to the approve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame meaning as in clause (b) of the Explanation below sub-section (2B) of section 32A]. It would also be pertinent to quote clause (a), of sub-section (2B), of section 35 of the Act, though we are not directly concerned with it in the instant case: "Section 35(2B)(a): Where (before the 1st day of March, 1984) an assessee has incurred any expenditure (not being in the nature of capital expenditure incurred on the acquisition of any land or building or construction of any building) on scientific research undertaken under a programme approved in this behalf by the prescribed authority having regard to the social, economic and industrial needs of India, he shall, subject to the provisions of this sub-section, be allowed a deduction of a sum equal to one and one-fourth times the amount of the expenditure certified by the prescribed authority to have been so incurred during the previous year." 8. Now we consider each of these provisions in its proper perspective. Clause (ii), of section 35(1), of the Act pertains to donation made to a Scientific Research Association or, to a University, college or other institution to be used for scientific research. In other words, donation made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... research in social sciences also. 13. This is not intended by the Legislature also, as in the very next clause, that is, as per clause (iii) of section 35(1), an assessee is entitled to a deduction for donation made towards research in social science or statistical research and it is pertinent to note that in clause (iii), an entity called "scientific research association", has no place as it has in clause (ii). 14. Now coming to section 35(2A), it entitles the assessee for a weighted deduction for donation made for scientific research undertaken under a programme approved in this behalf having regard to the social, economic and industrial needs of India. The stress here is on approved programmes and the deduction pertains to a contribution made for scientific research undertaken under such approved programme. The Government shall accord approval to the programme if it is in consonance with the social, economic and industrial needs of India. In other words the scope of scientific research under section 35(2A) is not only different but much wider also as compared to the one contemplated in section 35(1)(ii). Section 35(2A) embraces within its fold research in all the three scien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(2A) will have to be given a wider meaning to make the section workable. Thus the term "scientific research" in so far as section 35(2A) is concerned will embrace the research contemplated both, in section 35(1)(ii) as well as in section 35(1)(iii), and hence it is in conceivable that an institution, though carrying out research under section 35(1)(iii), should have recognition under section 35(1)(ii). 17. Further, the basic purpose of approval under section 35(1)(ii) is to see that the institution has the necessary facilities and infrastructure to carry out such an activity. The Government, while according its approval under section 35(2A) also sees to it that the institution has the necessary facilities to carry out such an activity. Hence, when a programme has been approved under section 35(2A), all the aspects including the one contemplated in section 35(1)(ii), have been gone into, in fact, in more detail. Therefore, there does not seem to be any necessity for a separate approval under section 35(1)(ii). 18. It would also be pertinent now to note the provisions of section 35(2B). This provision entitles an assessee for weighted deduction of 125 per cent on the same premis ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
