INCOME TAX ACT, 1961

Section 80G(5)

Deduction under section 80G(5) - Donation paid by assessee under section 80G allocation to the unit eligible for deduction under section 80-IC - Eligibility of -

Issue arose under consideration as to whether the donation paid by assessee under section 80G needed to be allocated to the unit eligible for deduction under section 80-IC. Held: Donation paid by assessee had no connection with the unit eligible for deduction under section 80-IC. The scheme provides to claim the deduction under section 80G after claiming all the deduction provided under Chapter VI-A of the Income Tax Act. Therefore, assessee could claim the deduction on account of such donation only against the Gross Total Income after claiming all other deduction. Donation paid by assessee could not be claimed as an expense in the profit and loss account as the same was not incurred wholly and exclusively for the purpose of the business as provided under section 37(1). Thus, only option available to assessee to claim the deduction on account of such donation is only under the provisions specified under section 80G which could be claimed in manner as discussed.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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