TaxTMI 
TaxTMI 
2002 (10) TMI 3
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....Income-tax Act (for short "the Act"), could subsequently become disentitled to the said deduction by reason of subsequent events. Section 35CCA provides: "35CCA. (1) Where an assessee incurs any expenditure by way of payment of any sum- (a) to an association or institution, which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme of rural development approved by the prescribed authority or .... the assessee shall, subject to the provisions of sub-section (2), be allowed a deduction of the amount of such expenditure incurred during the previous year. (2) The deduction under clause (a) of sub-section (1) shall not be allowed in respect of expenditure by way of payment of an....
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....bed authority authorisation in writing to issue certificates of such nature. Explanation.-For the purposes of this section, 'programme of rural development' shall have the meaning assigned to it in the Explanation to subsection (1) of section 35CC." It is not in dispute that the assessees had made donations to the Society for Integral Development, Calcutta, which had as its object the undertaking to carry out approved programmes of rural development. The society had granted a certificate to the assessee which had also been approved by the prescribed authority. According to the Revenue authorities the assessees were not entitled to deduction as claimed despite the aforesaid because subsequently the approval granted by the prescribed aut....
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....fficer on the reasons and grounds given in the order passed on appeal? (2) Whether, on the facts and in the circumstances of the case, and in view of the findings of facts recorded by the Tribunal on questions of facts arising for decision, the Tribunal was justified in law in holding that the entitlement of the assessee for claiming deduction of the amount donated to the approved society would depend upon the utilisation of such fund by the approved society in the approved programme before the date specified in the section and on this basis only restoring the matter to the Assessing Officer?" The High Court followed the reasoning of the Calcutta High Court in CIT v. Bhartia Cutler Hammer Co. [1998] 232 ITR 785, and came to the conclusio....