1988 (12) TMI 149

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....ndividual, with previous year ending 31st March derived income from three sources, namely, salary, share income in a firm and other sources during the relevant previous year. A sum of Rs. 50,000 was contributed by him to Shri Navchetana Pragati Mandal (hereinafter referred as 'Mandal') Veerabar, Gujarat and claimed as deduction under section 35CCA of the Act. 4. During the assessment completed by the income-tax Officer under section 143(3) of the Act, the aforesaid deduction was allowed. However, the assessee was served with a notice by the learned Commissioner of Income-tax under section 263 of the Act to show cause as to why the order passed by the Income-tax Officer granting exemption in respect of the aforesaid Rs. 50,000 to the Mandal....

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.... 35CCA. 9. Learned counsel for the appellant contended that so long a payment was made by an assessee from his income derived from business, though as a partner, there was no restriction placed by the statute to its allowability under section 35CCA inasmuch as the deduction is made available to an 'assessee' with no particular qualification. It was also submitted that the mere absence of the eligibility of such an exemption in section 67 of the Act would not make any difference. Controverting these submissions the learned Senior Departmental Representative, contended before us that the Act by section 67 prescribed the mode for the completion of partner's share in the income of the firm. That in the wake of sub-section (3) of section 67 per....