Assessee can claim deduction without revised return. Air-conditioning town hall not charitable. Revenue appeal allowed.

The court held that an assessee can make an alternate claim for deduction before appellate authorities without filing a revised return if the necessary facts are available in the original return. However, the deduction under Section 80G for air-conditioning a town hall through a charitable trust was disallowed as it did not qualify as a donation for charitable purposes. The court allowed the revenue's appeal, setting aside the orders that permitted the Section 80G claim.

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Issues Involved:
1. Whether the assessee is entitled to make an alternate plea for deduction by mere submission before the Assessing Officer without revising the return.
2. Whether the Tribunal erred in allowing the claim under Section 80G of the Income Tax Act for air-conditioning a town hall through a charitable institution.

Detailed Analysis:

Issue 1: Alternate Plea for Deduction Without Revising Return

The core issue revolves around whether an assessee can claim a deduction under a different provision than initially claimed in the return, without filing a revised return. The assessee initially claimed a deduction under Section 37 for business expenses, which was disallowed. Subsequently, they claimed a deduction under Section 80G for donations to a charitable trust.

The court referenced Goetze (India) Ltd. v. Commissioner of Income-Tax [2006] 284 ITR 323 (SC), where it was held that a claim made other than by way of a revised return is not permissible. However, the assessee cited NTPC Limited v. Commissioner of Income-Tax [1998] 229 ITR 383 (SC), which allowed for such claims to be considered by appellate authorities.

The court noted that the facts and law in Goetze (India) Ltd. and Pruthvi Brokers and Shareholders Pvt. Ltd. [2012] 349 ITR 336 (Bom) are distinguishable. In the latter, the claim was made in the return but the figures were for another year, which was corrected during assessment. The court emphasized that appellate authorities can consider claims not raised in the return if the necessary facts are available in the return, as supported by Additional Commissioner of Income-Tax v. Gurjargravures [1978] 111 ITR 1 and NTPC.

The court concluded that the assessee could make the alternate claim under Section 80G before the appellate authorities, even if the Assessing Officer disallowed it for lack of a revised return. The necessary facts for the claim were present in the return, and the appellate authorities had the jurisdiction to consider it.

Issue 2: Deduction Under Section 80G for Air-Conditioning a Town Hall

The court examined whether the Tribunal erred in allowing the deduction under Section 80G. The assessee claimed that the expenditure for air-conditioning a town hall through a charitable trust should be considered a donation eligible for deduction under Section 80G.

The court scrutinized the nature of the payment and found that it was not a donation to the trust but an expenditure for a specific purpose, i.e., air-conditioning a hall owned by the local authority. The trust acted merely as an agent of the assessee, and the funds were not applied for charitable purposes by the trust.

The court emphasized that for a deduction under Section 80G, the donation must be to an institution or fund established for charitable purposes, which was not the case here. The trust had no control over the funds and could not apply them for its charitable activities.

The court concluded that the payment did not qualify as a donation under Section 80G and rejected the claim. The orders of the first appellate authority and the Tribunal were set aside, affirming the Assessing Officer's decision.

Conclusion

1. The assessee is entitled to make an alternate claim for deduction before the appellate authorities even without a revised return, provided the necessary facts are available in the return.
2. The deduction under Section 80G for air-conditioning a town hall through a charitable trust was not allowable as it did not constitute a donation for charitable purposes.

The appeal by the revenue was allowed, setting aside the orders of the appellate authorities to the extent they allowed the claim under Section 80G.

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