1979 (5) TMI 80

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....er, restricted the reduction to the sum of Rs. 1 lac-the same for which relief under s. 80G was given while computing the total income for income-tax purposes. On appeal the AAC confirmed the ITO's order. It is thus that the matter is in appeal before us. 2. The learned Counsel for the assessee has pointed out that u/cl. (Vii) of r. 1 of the First Schedule to the Companies (profits) Surtax Act, 1964, the assessee was entitled to adjustment of an amount equal to fifty per cent of the sum given away by way of donations and not the actual deduction given by the ITO in working out the total income. He has referred to the clear provisions of cl. (Vii) in support of his case. For the Department, stress is laid on the orders of the authorities ....

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....ate; and (ii) in any other case, an amount equal to fifty percent of the aggregate of the sums specified in sub-s (2)" Under s. 80-G, the assessee is entitled to a deduction in respect of donations etc. where they are made in connection with promotion of family planning to the extent of the whole of the sum donated and in all other cases an amount equal to fifty per cent of the aggregate of the sums specified in sub-s. (2) of s. 80-G. The above provisions clearly indicate that the rationale behind reducing a portion of the amount donated from the total income computed for income-tax purposes while computing the chargeable profits is not so as to give relief in respect of the balance of fifty per cent as claimed by the learned departme....