TMI Blog1994 (11) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... scribed under section 80G(4) should be applied only after computation of the deduction allowable under section 80G(1) so that the assessee would be entitled to deduction of 50 per cent. of the donation as restricted by the ceiling limit of ten per cent. of the total income?" The assessee is a limited company. This reference pertains to the assessment year 1973-74. In its assessment for this assessment year, the assessee-company claimed deduction under section 80G(1) of the Income-tax Act, 1961 ("the Act"). The aggregate of the amounts referred to in sub-clauses (iv) and (v) of clause (a) of sub-section (2) exceeded the sum of Rs. 2 lakhs. The assessee computed the deduction under section 80G of the Act as 50 per cent. of the aggregate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institutions, etc. -- (1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section, an amount equal to,-- (a) where the assessee is a company, fifty per cent., and (b) in the case of any other assessee, fifty-five per cent., of the aggregate of the sums specified in sub-section (2). (2) The sums referred to in sub-section (1) shall be the following, namely :-- (a) any sums paid by the assessee in the previous year as donations to-- (i) the National Defence Fund set up by the Central Government ; or (ii) the Jawaharlal Nehru Memorial Fund referred to in the Deed of Declaration of Trust adopted by the National Committee at its meeting held on the 17t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, then such limit shall be raised to cover that portion of the donations aforesaid which is equal to the difference between such aggregate and the said limit, so, however, that the limit so raised shall not exceed ten per cent. of the assessee's gross total income as reduced as aforesaid, or five hundred thousand rupees, whichever is less." (emphasis supplied). It is evident on a plain reading of section 80G itself that in the computation of the total income, the assessee who is a company is entitled to a deduction of an amount equivalent to 50 per cent. of the aggregate of the sums specified in sub-section (2). The deduction, however, would be assessed in accordance with and "subject to the provisions of this section". Sub-section (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e part of the aggregate of the sums specified in sub-section (2) in respect of which deduction can be allowed under sub-section (1). It does not deal with the amount of deduction that can be allowed under sub-section (1). The computation of deduction under sub-section (1) has to be made in respect of the aggregate of the sums specified in sub-section (2) read with sub-section (4). We are, therefore, of the clear opinion that the ceiling specified in sub-section (4) applies to the aggregate of the sums in respect of which deduction is claimed and not to the amount of deduction allowed under sub-section (1) which has to be computed in the manner specified therein. We have carefully considered the decision of the Andhra Pradesh High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onably possible in the opinion of the court deciding the point at issue. In such a case the court should tilt in favour of the assessee. But where on a plain reading of the statutory provision, it is of the opinion that one and only one interpretation is reasonably possible and that is against the assessee, it cannot give an erroneous interpretation in favour of the assessee by taking resort to the principle of beneficial interpretation. As observed by this court in CIT v. Mirza Ataullaha Baig [1993] 202 ITR 291 : ". . . . this principle applies only when there is reasonable and genuine doubt in regard to the interpretation of a particular provision. It has no application to a case where the provision is clear and the law is well-settle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by parties and argued forcefully, or that one such view which is favourable to the assessee has been accepted by some Tribunal or High Court, by itself will not be sufficient to attract the principle of beneficial interpretation. " We are, therefore, of the clear opinion that the principle of beneficial interpretation has no application to the present case. Another submission of learned counsel for the assessee was that section 80G being intended to give relief in respect of donations for charitable purposes, it should be construed liberally so as to give benefit to the assessee. We appreciate the sentiments of learned counsel. Left to us, we might have considered this submission. But that is not so. It is for the Legislature to decid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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