ORDER
T.N.C. Rangarajan, Judicial Member
1. This appeal by the revenue is directed against the order of the Commissioner (Appeals) allowing’ the deduction Under Section 80G as claimed by the assessee in computing the total income for the assessment year 1981-82 corresponding’to the previous year ended 31-12-1980. The assessee had made donation of Rs. 1,06,000. The total income of the assessee had been determined at Rs. 8,02,178. The Income-tax Officer granted a deduction of only Rs. 40,109 being 50% of 10% of the total income. On appeal, the Commissioner (Appeals) followed the decision of the Andhra Pradesh High Court in the case of Hyderabad Race Club v. Addl. CIT [1979] 120 ITR 185 and held that the assessee was entitled to the deduction of 50% of the donation made, subject to a ceiling of 10% of the total income and since that was Rs. 80,217 the assessee was entitled to the deduction of Rs. 53,000 as claimed Under Section 80G. It has been brought to our notice by the revenue that the section has since been amended by the substitution of Sub-clause (iv) by the Finance (No. 2) Act of 1980 with effect from 1-4-1981 which provides that if the aggregate of the sums namely, the donations eligible for deduction, exceeds 10% of the gross total income, the amount by which the aggregate exceeds shall be ignored for the purpose of computing the deduction. The memorandum explaining this change clearly indicates that the amendment was brought to get over the decision of the Andhra Pradesh High Court and makes the intention clear that it is the donations that should not exceed 10% of the total income and not the amount of deduction. In view of this statutory change, it is clear that the computation made by the Income-tax Officer was correct and the relief granted by the Commissioner (Appeals) without noticing the change in law was incorrect. We, therefore, reverse the order of the Commissioner (Appeals) and restore the order of the Income-tax Officer. The appeal is allowed.