Law:

Section:

Section 80G of the Income-tax Act, 1961 (Corresponding to section 15B of the Indian Income-Tax Act, 1922) - Deduction - Donation to certain funds, charitable institutions - Assessment year 1953-54 - Assessee derived agricultural and non-agricultural income - He, however, maintained one composite cash book for agricultural and non-agricultural income - Assessee made donations to an approved institution under section 15B of 1922 Act - Department taking proportion between agricultural and non-agricultural income, allowed rebate only on part of amount donated out of non-agricultural income - Whether having regard to provision of section 15B of 1922 Act, Department was not entitled to apportion contribution to charity between agricultural income and non-agricultural income - Held, yes - Whether, therefore, assessee was entitled to rebate on entire sum donated under section 15B of 1922 Act - Held, yes FACTS The petitioner-assessee derived agricultural and non-agricultural income. He maintained one composite cash book for his agricultural and non-agricultural receipts and disbursements. During accounting year relevant to the assessment year 1952-53 the assessee contributed Rs. 10,000 as a donation to a college, an institution approved under section 15B of the 1922 Act. In the cash book, the said sum of Rs. 10,000 was simply debited without stating whether it came out of the agricultural or non- agricultural income. Before the authorities, the petitioner-assessee claimed that he was entitled to a rebate on the said sum of Rs. 10,000 under section 15B of 1922 Act. As there was no proof that the contribution was made solely from and out of the non-agricultural income, the Department allowed only a rebate of Rs. 1,754 taking the proportion between the agricultural and non-agricultural income. On second appeal, the Tribunal upheld the order of revenue authorities. On reference: HELD The Department was not entitled to apportion the contribution to charity between the agricultural income and the non-agricultural income. According to the plain meaning of section 15B of 1922 Act, the Department was not entitled to apportion. The petitioner-assessee filed an affidavit that as…

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