Full tax rebate for approved charitable donation cannot be reduced by apportioning it between income sources.

A qualifying donation to an approved charitable institution could not be apportioned between agricultural and non-agricultural income to reduce the rebate available under section 15B of the Indian Income-tax Act. The court held that, where the statutory language grants exemption for sums paid as such donations, the department has no authority to split the payment and restrict relief only to the portion linked to taxable income. In fiscal provisions, plain language must be applied as written, and any ambiguity is construed in favour of the taxpayer. The assessee was therefore entitled to rebate on the full donation.

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Issues: Whether, on the facts of the case, the assessee was entitled under section 15B of the Indian Income-tax Act to rebate on the full donation of Rs. 10,000 made to an approved charitable institution, or whether the department could apportion the donation between agricultural and non-agricultural income and restrict the rebate to the proportion attributable to non-agricultural income.

Analysis: Section 15B exempted from tax any sums paid as donations to an approved charitable institution. The donation in question formed part of the income of the accounting year and was shown in the assessee's common accounts. The Court held that the statute did not authorise the department to split the donation and attribute only a proportion to taxable income. Where the language of a fiscal enactment is plain, it must be given effect to, and any ambiguity must be construed in favour of the subject. The analogies relied upon by the department did not justify importing an apportionment principle into section 15B.

Conclusion: The assessee was entitled to rebate on the entire sum of Rs. 10,000 under section 15B, and the departmental restriction of the rebate to Rs. 1,754 was impermissible.

Ratio Decidendi: In the absence of express statutory authority, a donation qualifying under a fiscal exemption provision cannot be apportioned between taxable and non-taxable sources so as to reduce the exemption otherwise available.

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