Commissioner of Income Tax vs Kalkulam Vilavancode Taluk Co-operative Marketing Society Ltd.

K.A. Thanikkachalam, J.—In pursuance of the direction given by this court in its order dated February 23, 1981, in T.C.P. No. 455 of

1980, the Tribunal referred the following question for the opinion of this court u/s 256(2) of the Income Tax Act, 1961 :

Whether, on the facts and in the circumstances of this case, the Appellate Tribunal was correct in law in holding that the payment of Rs. 4,51,613

to the District Welfare Fund by the assessee (society) should be deducted from its total income ?

The point for consideration is whether the assessee is entitled to deduction with regard to payment made to the District Welfare Fund by the

assessee from its total income.

A similar question came up for consideration before this court in T.C. No. 695 of 1982 in the case of CIT v. Kanyakumari District Co-

operative Supply and Marketing Society, Nagercoil, wherein by a judgment dated November 30, 1994, this court held that the assessee is entitled

to deduction with regard to the payment made to the District Welfare Fund from the total income of the assessee. In view of the above said

decision of this court, we answer the question referred to us in the affirmative and against the Department. No costs.