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2017 (8) TMI 125 - HC - Income TaxDisallowance u/s 14A - earning the dividend income which was exempt under section 10(34) - Held that:- Assessing Officer after considering the totality of facts and circumstances had disallowed ₹ 1,35,270 under section 14A of the Act following the decision of the Tribunal in the case of Nahar Industrial Enterprises Limited for the assessment year 1997-98 on similar grounds. On appeal by the assessee, the disallowance of ₹ 1,35,270 made by the Assessing Officer under section 14A of the Act was upheld. Further appeal carried by the assessee to the Tribunal was rejected and order of the Assessing Officer and the Commissioner of Income-tax (Appeals) was upheld on this count. It has been recorded by the Tribunal that the disallowance had been computed on a reasonable basis and the same did not show any irrational or irrelevant considerations. Thus, the Tribunal correctly did not interfere with the determination of the amount as made by the Assessing Officer and the Commissioner of Income-tax (Appeals). Deduction under section 80G - Donation by way of clothes towards Prime Minister's Relief Fund for Jammu and Kashmir Earthquake Relief - Held that:- Learned counsel for the assessee was unable to show in the light of Explanation 5 to section 80G which was inserted by the Finance Act 1976, effective from April 1, 1976 that the deduction was admissible. The assessee could not claim deduction under section 80G of the Act in respect of donations by way of clothes sent to the Prime Minister's Relief fund for Gujarat Earthquake relief the same being in kind and not in cash, cheque or draft. The Tribunal was right in declining the benefit under section 80G of the Act. In view of the express pro vision contained in Explanation 5 to section 80G of the Act, once it was goods, no deduction was admissible. Assessee appeal dismissed.
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