1994 (7) TMI 37

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....ts and circumstances of the assessee's case the hon'ble Tribunal was justified in holding that there was no nexus established in this case between giving of donation on the one hand and the business perspective of the firm on the other and, therefore, the same was not allowable as business expenditure under section 37(1) of the Act and only 50 per cent. deduction under section 80G was allowable ? 2. Whether under the facts and circumstances of the assessee's case the hon'ble Tribunal was justified in holding that the donations given to the several institutions were not given with a view to get either business benefit or for any business purpose and whether it was necessary for the assessee to prove a direct and tangible business benefit ....

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....nts the turnover of the assessee has been increased. The Income-tax Appellate Tribunal found that so far as the payment to drought and flood relief funds are concerned, the decision of the Tribunal relied upon by the assessee is not applicable as in that case there was a scheme/provision for relief of the affected persons due to flood whereas in the present case no such facts have been brought on record by the assessee. In these circumstances, it was held that the assessee is entitled to deduction of 50 per cent. as provided under section 80G of the Act. The submission of learned counsel for the assessee is that by making the donations to the Rotary Club, Pali, Sewa Mandal, Chima Bai Lalchand and the Rajasthan Chief Minister's Drought an....

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.... incurred by the assessee was wholly and exclusively for the purpose of business or profession is on the assessee. The assessee had failed to prove that the expenditure incurred by it was exclusively for the purpose of business. Besides the above, the provisions of section 37 are general in nature and the provisions of section 80G are specific. Applying the maxim generalia specialibus non derogant if an amount is liable for deduction under section 80G it cannot be claimed under the general provisions of section 37(1). Section 80G provides that in computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section, an amount equal to fifty per cent. of the aggregate of the s....