The Commissioner Of Income Tax vs South India Viscose Limited (2003) 259 ... on 16 April, 2009
14. We have heard rival submissions and gone through the facts and circumstances of the case. We
note that the donations were given to local clubs as well as to Ram Krishna Mission and Bharat
Sevasram Sangha, which has been disallowed by AO. On appeal die Ld CIT(A) gave partial relief
by allowing 50% of the expenditure claimed as donation.Against the said action of Ld CIT(A) both
parties are before us. We note that on similar issue of expenditure claim in respect of donation
given to the local clubs during Durga Puja etc. was before the Hon'ble Calcutta High Court in CIT
Vs. Bata India Ltd. 201ITR 884 (Cal) wherein it was held to be an allowable expense. However, we
find that even though the assessee in its reply has stated that certain donations were given to the
local clubs etc. the amount given as donation to the local clubs are not discernible from the
materials placed before us, so it has to be verified by the AO and the AO to allow 100% deduction
on the claim of expenditure in respect of donations given by the assessee to the local clubs. Coming
to the assessee5 s donation to the Ram Krishna Mission and Bharat Sevashram Sangha is
concerned again the facts are not clear. So it needs verification by AO and if the donee societies
have 80G certification, then deduction in accordance to law should be given to the assessee in
respect of the donation given to it. So, we remand this issue back to the file of the AO for factual
verification and to pass orders in accordance to law. Therefore, the assessee's ground no. 2 and
6
ITA No.376 & 377/Kol/2020
Eastern Coalfields Ltd.