1972 (6) TMI 19

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.... the assessee-company was eligible for exemption under section 88 of the Income-tax Act, 1961 ? " The assessment year is 1965-66, and the relevant accounting year is the calendar year 1964. The assessee is a public limited company carrying on the business of manufacture and sale of woollen and cotton fabrics. During the relevant accounting year, the assessee-company donated cloth manufactured by it to various charitable institutions of the value of Rs. 6,834. The assessee claimed exemption in respect of the said amount under section 88 of the Act. The Income-tax Officer disallowed the claim as the donation was not made in cash, but in kind. The Appellate Assistant Commissioner of Income-tax, Bangalore, on the appeal preferred by the assess....

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....ed March 14, 1960, having been cancelled by the circular dated January 17, 1964, the learned counsel for the assessee is not entitled to rely on the earlier circular since the relevant year of accounting is the calendar year 1964. Sub-section (1) of section 88 of the Act as it stood at the relevant period read thus : " 88. Donations for charitable purposes, etc.--(1) Subject to the provisions of this section, the assessee shall be entitled to a deduction from the amount of income-tax on his total income with which he is chargeable for any assessment year-- (a) where the assessee is a company, of an amount equal to the income-tax calculated at the average rate of income-tax or at the rate of twenty-seven and a half per cent., whichever is ....