Law: Income Tax Act, 1922

Section: 15D,15C

Income-tax Act, 1922 -- Section 15D -- Rebate -- Donation to approved institution or fund -- Donation, whether confined to cash payment -- Held no -- Donation made by transferring shares at their face value -- Rebate, whether permissible on the real value of the shares -- Held yes -- "Any sun paid", meaning of --Words "sums paid" -- Meaning -- Assessee transferring shares as donation to certain Foundation approved by Central Board of Revenue -- Such transfer of shares amounts to contribution -- Assessee held entitled to rebate in accordance with law -- ORDER The order was passed by A. AHMAD, Accountant Member.- These are departmental appeals directed against a consolidated order of the Appellate Assistant Commissioner for the charge years 1960-61 and 1961-62. The dispute for both the years is identical which has been expressed as under:- "Where in the facts and circumstances of the case the learned Appellate Assistant Commissioner was justified in holding that the words "any sums paid" used in Section 15D mean and include shares also and in directing allowance of consequential relief provided for in the said section." The facts and the views have been described by the Appelate Assistant Commissioner in the following terms:- "The assessee, it appears, claimed rebate under Section 15D on donation made to the GMD foundation approved by the CBR. This donation was made by transferring the shares to the value of Rs. 1,10,000 and Rs. 60,520 for the assessment years 1960-61 and 1961-62 respectively. The ITO did not allow any rebate as according to him the assessee is not entitled to this concession as the donation had not been made out of income but the assessee had only released a portion of his movable assets. It is urged by the learned representative that Section 15D does not contemplate that the donation has to be made out of income. It simply states that the tax shall not be payable by an assessee in respect of any sums paid by him ,,,,..as donation to any institution or fund approved by the Central Government for the purpose of this section. The contention of the learned representative appears to be correct. There is nothing in this section to suggest that the…

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