TMI Blog1990 (9) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... n 261 of the Income-tax Act, 1961, and under article 133 of the Constitution is directed against the judgment of a Division Bench of the High Court of Kerala dated April 11, 1975, holding that the appellant was not entitled to the benefit of section 80G of the Income-tax Act, 1961, in respect of the donations made by him in the previous years. The appellant is an assessee under the Income-tax Act. He donated equity shares of Nirlon Synthetic Fibres and Chemicals Ltd. having a face value of Rs. 12,50,000 to each of two trusts, namely, H. H. Maharani Setu Parvati Bayi Trust and H. H. Princess Lakshmi Bayi Trust. The total donation, according to the assessee, amounted to Rs. 25,00,000. For the assessment year 1968-69, the assessee claimed ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On a plain reading of the section, it is apparent that an assessee is entitled to claim deduction from his income on the amount of money paid by him as donation to the authorities and for the causes specified therein. The use of the expression "any sums paid" contemplates payment of an amount of money. One of the dictionary meanings of the expression "sum" means any indefinite amount of money. The context in which the expression "sums paid by the assessee" has been used makes the legislative intent clear that it refers to the amount of money paid by the assessee as donation. The Act provides for assessment of tax on the income derived by an assessee during, the assessment year ; the income relates to the amount of money earned or received b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... donation must be in cash. As against this view, other High Courts in CIT v. Amonbolu Rajiah [1976] 102 ITR 403 (.AP); CIT v. Gopal Krishna Singhania [1980] 121 ITR 260 (All) and CIT v. Smt. Dhirajben R. Amin, [1983] 141 ITR 875 (Guj), have held that section 80G(2)(a) does not contemplate any donation in kind ; instead, the expression "sums" relates to the cash amount of money which may have been donated by the assessee. On a careful scrutiny of the two opinions in the aforesaid judgments, we are in agreement with the view taken by the High Courts of Andhra Pradesh, Allahabad and Gujarat in holding that section 80G(2)(a) contemplates only cash amount of money as donation, for claiming relief of deduction and it does not refer to any donatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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