Escorts Employees Ancillaries vs Commissioner of Income Tax

This petition has been filed by the assessee u/s 256(2) of the Income Tax Act, 1961, seeking a mandamus, directing the Tribunal to refer the following two questions of law to this court for its opinion :

"1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in law in holding that deduction u/s 80G in respect of the amount paid to Escorts Cardiac Disease Hospital Society is not allowable ?

Whether the Income Tax Appellate Tribunal was correct in law in the facts and circumstances of the case in holding that deduction u/s 35AB could not be allowed in respect of payments made prior to April 1, 1986, and thereby denying deduction of Rs. 1,26,944 being 1/6th of Rs. 7,61,666 ?"

These are relatable to the assessment year 1986-87 and arising out of Income Tax Appeal No. 3326/Delhi of 1S90 and R. A. No. 1028/Delhi of 1994.

Mr. Sharma did not press for question No. 1.

After hearing learned counsel for the parties, we are of the opinion that question No. 2 does arise from the order of the Tribunal and accordingly direct the Income Tax Appellate Tribunal, Delhi Bench "D", Delhi, to refer question No. 2 reproduced above along with the statement of the case to this court for its opinion.