TMI Blog1979 (1) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... 256(1) of the I.T. Act, 1961, the following question of law has been referred to us for our consideration : " Whether, on the facts and in the circumstances of the case, the donations in the shape of medicines of the value of Rs. 44,945 were rightly allowed as donations under section 88 of the Income-tax Act, 1961 ? " The assessee is a private limited company, which carries on the business of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be no objection to treat the donation as having been made constructively in cash if the value of the goods donated is included in the sales and a contra-debit is made to the profit and loss account to represent the sum donated. " Accordingly, the AAC allowed the appeal and directed the ITO to allow the rebate on the full amount of Rs. 44,945. The revenue, being dissatisfied with the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplied against bills but no cash was received in respect of the same. It was further urged that the position was that instead of taking cash from the defence department and giving the same back to the department, the assessee did not take any cash and, therefore, it could be said that the donation was in fact in cash. The Tribunal accepted the submissions as made by the assessee and, relying on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in Associated Cement Co. Ltd's case[1968] 68 ITR 478. We had occasion to consider the Associated Cement Co. Ltd.'s case [1968] 68 ITR 478 (Bom) and Amonbolu Raj iah's case [1976] 102 ITR 403 (AP) in the decision given by us in Income-tax Application No. 106 of 1977 (Commissioner of Income-tax v. Traub (India) Private Ltd.-decided by Chandurkar and Desai JJ. on 23rd November, 1977 since repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fairly substantial judgment dealing fairly extensively with the view of the Andhra Pradesh High Court in Amonbolu Rajiah's case [1976] 102 ITR 403. The view which this court has expressed in Associated Cement Co. Ltd.'s case [1968] 68 ITR 478 (Bom) and reaffirmed in Traub (India) Private Ltd.'s case (Income-tax Application No. 106 of 1977 -since reported in [1979] 118 ITR 525 (Bom)) has been foll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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