TMI Blog1993 (9) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... or donation under section 80G(1) with reference to the gross total income as defined in section 80B(5) ?" The assessee is an individual. This reference pertains to the assessment year 1968-69. The previous year relevant to this assessment year is year ended on March 31, 1968. During this year, the assessee had donated a sum of Rs. 1,21,101 and claimed relief under section 80G of the Income tax Act, 1961, in respect thereof. There is no dispute either about the applicability of section 80G of the Act to the donation in question or the rate at which deduction is allowable under sub-section (1) of section 80G of the Act. The only dispute arose in regard to determination of the "gross total income" with reference to which the maximum amount p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -section (1) shall not be allowed in respect of such part of the aggregate of the sums referred to in sub-clauses (iv) and (v) of clause (a) and in clause (b) of sub-section (2) as exceeds ten per cent. of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), or two hundred thousand rupees, whichever is less : Provided that where such aggregate includes any donations referred to in clause (b) of sub-section (2) and such aggregate exceeds the limit of two hundred thousand rupees specified in this sub-section, then such limit shall be raised to cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80G(4) read with section 80B(5) continues to be the total income computed in accordance with law, without making any deduction under section 280-0 of the Act. The only difference in the manner of computation of "gross total income" for the purpose of section 80G(4) is that such income is to be reduced by any deduction under any provisions of Chapter VI-A meaning thereby sections 80C to 80V and not section 280-0 which forms part of Chapter XXII-A of the Act. Admittedly, annuity deposit was allowed as a deduction under section 280-0 of the Act and not under any of the sections in Chapter VI-A of the Act. In that view of the matter, the Tribunal was right in holding that deduction on account of donations under section 80G(4) has to be allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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