TaxTMI 
TaxTMI 
1979 (1) TMI 79
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....vate limited company, which carries on the business of manufacture and sale of pharmaceutical goods. The assessment year with which we are concerned is the year 1964-65, for which the assessee claimed that it should get a rebate under s. 88 of the I.T. Act, 1961, in respect of the contribution in the shape of medicines of the value of Rs. 44,945, which it had donated to the National Defence Fund. The ITO did not mention anything about this claim by the assessee in his order but merely disallowed the same. The assessee then appealed to the AAC. The AAC referred to letter F.No. 69/8/63-IT dated 21st January, 1963, of the Central Board of Revenue to the Federation of the Indian Chambers of Commerce & Industry, wherein it was stated as follows ....
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....he department, the assessee did not take any cash and, therefore, it could be said that the donation was in fact in cash. The Tribunal accepted the submissions as made by the assessee and, relying on the aforesaid decision of this High Court, viz., Associated Cement Co. Ltd.'s case [1968] 68 ITR 478 (Bom), held that the donations were rightly allowed as a deduction by the AAC. At the bar it was pointed out that the aforesaid decision in Associated Cement Co. Ltd.'s case [1968] 68 ITR 478 (Bom) has been applied by the Madras High Court in Addl. CIT v. Abhai Maligai [1978] 113 ITR 737, where the Madras High Court has expressed its agreement with the view of the Bombay High Court in Associated Cement Co. Ltd.'s case [1968] 68 ITR 478, that wh....