TMI Blog1993 (8) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... On being pointed out, the assessee filed a fresh memo before the CIT(A) in the course of hearing where it was signed by the managing director. The CIT(A) ignored the technical default and proceeded to dispose the issues on merits. The Revenue objects to this decision and is in appeal before us. 5. We have heard the rival submissions. It has been held by the Tribunal in the case of Hari lelas vs. First ITO (1986) 16 ITD 356 (Bom) that a memo signed by a wrong person is a curable defect and not fatal. Further, when a properly signed memo is filed subsequently, it relates back to date on which the original defective memo was filed. Respectfully following this decision, we hold that the CIT(A) was justified in entertaining the appeal. This ground of appeal is rejected. 6. Ground of appeal No. 2 is reproduced as below: "On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in directing the Assessing Officer to exclude reimbursement of club fees from the computation of disallowance under s. 40(C)/40A(5) of the IT Act, 1961." 7. We have heard the rival submissions. It has been held by the Bombay High Court in the case of CIT vs. Otis Elavator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the assessee on the other hand submitted that it was a revenue expenditure. He explained that the assessee had business of designing chemical plants and also giving assistance in their erection. For this purpose, some facilities were being manufactured by M/s Patel Filters Ltd., and the assessee held 39% shares of the company. Our attention was also invited to note 7 in auditor's report. It was further submitted that Punjab Haryana High Court had held in the case of Hindustan Milk Food Mfrs. Ltd. vs. CIT (1989) 80 CTR (P H) 81 : (1989) 45 Taxman 392 (P H) that expenditure incurred for seeking legal advice from legal counsel for purchase of land was allowable as deduction as revenue expenditure under s. 37(1) of the IT Act. He, therefore, submitted that the decision of the CIT(A) should be confirmed. 15. We have considered the rival contentions carefully. In the case of Hindustan Milk Food Mfrs. Ltd. vs. CIT, the Punjab Haryana High Court was considering the allowability of expenditure incurred on seeking legal advice. The assessee wanted to purchase land for extension of their manufacturing activities and legal advice was sought in that connection, ultimately the land was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. vs. CIT (1983) 32 CTR (Bom) 306 : (1984) 145 ITR 793 (Bom). In the circumstances, we decline to interfere. 19. Ground No. 6 is reproduced below: "On the facts and in the circumstances of the case and in law the learned CIT(A) erred in deleting the disallowance made of Rs. 6,777 the addition made by the Assessing Officer on account of subscription to club." 20. The CIT(A) held that subscription to club also served business purpose and was, therefore, allowable under s. 37(1). We see no reason to interfere. This ground is rejected. 21. Ground No. 7 is reproduced below: "On the facts and in the circumstances of the case and law, the learned CIT(A) erred in directing the Dy. CIT to allow deduction under s. 80G of the IT Act, 1961 in respect of Rs. 1,00,000 in respect of the payment made to Manipal Institute of Technology Trust in Karnataka." 22. The Assessing Officer observed that the assessee claimed deduction under s. 80G in respect of contribution made to "Academy of General Education, Manipal". The receipt for the same was furnished before him. The Assessing Officer found that the Registrar of Companies had mentioned to the assessee-company in an appeal th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate one student for the institute, since it was the option of the donor to nominate student or not. He, therefore, submitted that the decision of the Supreme Court in the case of Commr. of Expnditure Tax vs. P.V.G. Raju was distinguishable. For this reason he submitted that the deduction had been rightly allowed by the CIT(A). 26. The learned counsel for the assessee has also invited our attention to the decision of the Tribunal in the assessee's own case for asst. yr. 1984-85 at paras 22 to 32 dealing with the question whether fees payable by the assessee-company towards technical designs, etc., as per agreement with M/s Dorr Oliver (INC) USA was allowable as revenue expenditure. It was held therein that it was a case of only a user of drawings, designs, etc., and not out-right purchase and, therefore, the expenditure was that of a revenue nature. The learned counsel submitted that the above decision along with note No. 7 of the annual report supported the contention that the existing investment in the shares of Patel Filters Ltd. and proposed further investment in that company were for commercial consideration and were related to the business of the assessee and were not mere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Supreme Court described the meaning of the word "donation" in the following words: "When a person gives money to another without any material return, he donates that sum. An act by which the owner of a thing voluntarily transfers the title and possession of the same from himself to another, without any consideration, is a donation. We do not require lexicographic learning nor precedential erudition to understand the meaning of what many people do every day, viz., giving donations to some fund or other, or to some person or other." "Indeed, many rich people out of diverse motives make donations to political parties. The hope of spiritual benefit or political goodwill, the spontaneous affection that benefaction brings, the popularisation of a good cause or the prestige that publicised bounty fetches—these and other myriad consequences or feelings may not mar a donation to make it a grant for a quid pro quo. Wholly motiveless donation is rare, but material return alone negates a gift or donation." 31. The essence of the matter, therefore, is whether the assessee gave Rs. 2 lakhs to Manipal Institute of Technology without any material return and without any consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X
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