1986 (10) TMI 91 - AT - Income Tax

Summary

Issues:
1. Allowance of deductions under section 35(1)(ii) of the Income-tax Act, 1961.
2. Denial of weighted deduction under section 35(2A).
3. Consideration of approval for weighted deduction.

Analysis:
The judgment by the Appellate Tribunal ITAT Jabalpur involved the appeal challenging the order of the Commissioner (Appeals) regarding the allowance of deductions under section 35(1)(ii) of the Income-tax Act, 1961 for the assessment year 1982-83. The assessee, a registered firm, had made a donation of Rs. 3 lakhs to S.J. Jindal Trust, Bangalore, supported by a photostat copy of receipts and approval from the Indian Council of Medical Research. The Income-tax Officer allowed the deduction under section 35(1)(ii) but denied the weighted deduction under section 35(2A, which was contested by the assessee.

During the appeal, the assessee argued that the donation was for a research program approved under Notification No. SO 1368 dated 7-3-1981. The Commissioner (Appeals) upheld the denial of weighted deduction under section 35(2A, stating that the program needed separate approval, which was lacking in this case. The Tribunal noted that the approval for section 35(1)(ii) was present but emphasized that approval for section 35(2A) required approval of the specific program for which the donation was made. As no evidence was provided by the assessee regarding the approval of the program, the denial of weighted deduction was confirmed.

The Tribunal found that the approval granted by the Indian Council of Medical Research was not sufficient for allowing weighted deduction under section 35(2A, as it only met the requirements of section 35(1)(ii). The assessee failed to demonstrate the approval of the specific research program for which the donation was intended. As a result, the denial of weighted deduction was deemed appropriate based on the factual position presented. The appeal was dismissed as no other grounds were raised or pressed during the proceedings.