JUDGMENT K.L. Manjunath, J.— This appeal is by the Revenue challenging the current findings of the Commissioner of Income Tax and the Income Tax Appellate Tribunal, Mumbai, dated April 27, 2004, in I.T.A. No. 6613/ MUM/97 raising the following substantial questions of law: (1) Whether the appellate authorities were correct in holding that donation made by the assessee to hospital prior to its being declared as eligible under a notification as per Section 35AC of the Act will also be entitled to claim the deduction as the notification would not only act prospectively but also retrospectively? (2) Whether the appellate authorities were correct in holding that a provision for premium on redemption of debentures of Rs. 4,82,143 is an allowable deduction by following the view expressed, in the earlier years which has not been accepted and appeal are pending and that of the apex court in the case of M/s. Madras Industrial Investment Corporation Ltd. Vs. The Commissioner of Income Tax, Tamil Nadu-I, Madras, AIR 1997 SC 2063 which is not applicable to the facts of the present case? 2. So far as the second question of law is concerned, the same is answered, against the Revenue and in favour of the assessee by the judgment of the Supreme Court in M/s. Madras Industrial Investment Corporation Ltd. Vs. The Commissioner of Income Tax, Tamil Nadu-I, Madras, AIR 1997 SC 2063 . 3. In regard to question No. 1 is concerned, both the authorities have concurrently held that the donation paid by the assessee to Vidya Sagar Hospital has to be allowed as deduction in view of the exemption granted to Vidya Sagar Hospital for three consecutive assessment years. Considering the exemption order granted to Vidya Sagar Hospital, the authorities have come to the conclusion that the exemption was not operating from a particular date and the same was effective for all the full assessment year. 4. In view of the same, we are also of the opinion that there is no specific date showing the validity of exemption granted to hospital. The authorities were justified in granting relief to the assessee. Accordingly, the said point is answered against the Revenue and in favour of the assessee. 5. In the result, the appeal is dismissed.