1993 (6) TMI 22

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.... sums to two organisations both of which had been approved by the prescribed authority under the provisions of section 35CCA of the Income-tax Act, 1961. The payments were made in 1982. The petitioner was assessed for the assessment year 1983-84. The petitioner's claim for deduction under section 35CCA was allowed by the Income-tax Officer in the assessment order. The Commissioner then sought to revise the assessment under section 263 on the following grounds : "The Income-tax Officer allowed incorrectly deduction amounting to Rs. 4,00,000 under section 35CCA on account of payment of Rs. 2 lakhs each to Messrs. Jayasree Gram Vikash Trust and Jagannath Rural Development Kendra, in spite of the fact that the conditions laid down in the ....

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....is made must have as its object the undertaking of any programme of rural development and the money must be given to be used for carrying out such programme of rural development. (2) The programme of rural development must be approved by the prescribed authority. (3) The association or institution itself must be approved by the prescribed authority. It is not in dispute that when the payment was made by the petitioner to the rural development association, it fulfilled at least the second and third conditions. The question is, whether the phrase "to be used" in clause (1) means actual user. The phrase "to be" presumes an action in future. The most appropriate meaning of the phrase "would be". " 1. Indicating aim, purpose, inte....