1997 (11) TMI 66

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....ax Appellate Tribunal, Allahabad Bench, Allahabad, under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), has referred the following question of law for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee would be entitled to claim deduction under section 80G of the Income-tax Act, 1961....

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....ites for allowance of deduction under section 80G of the Act was not there. In appeal, the Commissioner of Income-tax (Appeals) sustained the disallowance on a different ground. It was held that although the income of the society was exempt under sections 11 and 12 of the Act but still the assessee was not entitled to the exemption because the donation was made in kind and not in cash. The assesse....

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.... is whether the benefit under section 80G was permissible to the assessee who made the donation in kind, i.e., shares to a charitable institution and the donation was not made in cash. In CIT v. Gopal Krishna Singhania [1980] 121 ITR 260, a Division Bench of this court took the view that donations of movable and immovable properties are not within the purview of section 80G, only donations in c....

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....y the assessee. Therefore, for purposes of claiming deduction under section 80G(2)(a), the donation must be a sum of money paid by the assessee. The plain meaning of the words used in the section does not contemplate donations in kind. The donation of shares of a company does not amount to payment of any amount though the shares, on their sale, may be converted into money, and the donation so made....