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2020 (1) TMI 825 - HC - Income TaxDonation paid by the assessee u/s 80G allocation to the unit eligible for deduction u/s 80-IC - HELD THAT:- We note that the donation paid by the assessee has no connection with the unit eligible for deduction under section 80-IC of the Act. The scheme of the Act provides to claim the deduction u/s 80G after claiming all the deduction provided under chapter VI-A of the Income Tax Act. Therefore, the assessee can claim the deduction on account of such donation only against the Gross Total Income after claiming all other deduction. Donation paid by the assessee cannot be claimed as an expense in the profit and loss account as the same has not been incurred wholly and exclusively for the purpose of the business as provided under section 37(1) of the Act. Thus even if the assessee claimed the donation as an expense in the profit and loss account, then it has to be disallowed while computing the income under the head business and profession. Thus, the only option available to the assessee to claim the deduction on account of such donation is only under the provisions specified under section 80G of the Act which can be claimed in the manner as discussed above. Appeal admitted on following question of law - [A] Whether Tribunal erred in deleting disallowance made on account of provision for Employee Long Term Compensation Plan? [B] Whether Tribunal erred in confirming decision of CIT(A) deleting disallowance of depreciation claimed by the assessee at the rate of 60% on the items connected with the VSAT? [C] Whether theTribunal erred deleting reduction of deduction under Section 80IC of the Act?
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