2013 (3) TMI 249 - HC - Income Tax

Renewal of petitioner institution under exemption Section 80 (G) denied - non furnishing of the documents - Held that - For furnishing aforesaid information, the petitioner had sought 5 adjournments as such information was required to be furnished by the petitioner, as the staff of the petitioner was busy in the examination work, petitioner institution had sought such time, but it was denied. Though on earlier occasions, five opportunities were allowed to the petitioner and petitioner was under an obligation to furnish such information but looking to the fact that before the impugned order, the petitioner institution was enjoying the benefit of Section 80(G) but because of the lapse on the part of the some employees of the petitioner institution, aforesaid exemption has been refused, in the interest of justice one more opportunity is to be allowed to the petitioner to furnish all the informations within a period of 30 days from today as agreed by the parties. So far as the consideration of the Book Sikh Ethos in the impugned order is concerned, petitioner may explain its status that it is a charitable institution, notwithstanding the fact that some opinion has been expressed by the author of the book.

Issues:
1. Refusal of renewal of exemption under Section 80 (G) of the Income Tax Act, 1961.
2. Non-furnishing of required information leading to the denial of renewal.
3. Request for another opportunity to provide the necessary information.
4. Legal considerations regarding the renewal of exemption under Section 80(G) of the Income Tax Act.
5. Conditions imposed for granting another opportunity to furnish information.
6. Consideration of the status of the petitioner institution as a charitable organization.

Analysis:
1. The judgment concerns the petitioner's challenge against the Commissioner, Income Tax's order refusing the renewal of the petitioner institution's exemption under Section 80 (G) of the Income Tax Act, 1961. This decision was a result of the petitioner's failure to provide the required documents despite multiple adjournments, leading to the denial of renewal.

2. The petitioner had previously sought several adjournments to furnish the necessary details as directed by the Commissioner, Income Tax. However, on the final date, the information was not provided due to the staff's involvement in examination work, resulting in the refusal of renewal. The petitioner requested another opportunity to submit the required information to rectify the lapse.

3. The petitioner, through their counsel, argued that they were willing to provide all the information as directed by the Commissioner and any additional details required. On the other hand, the respondents opposed granting further leniency, highlighting the petitioner's failure to comply despite multiple chances.

4. In light of the circumstances and to ensure justice, the Court decided to grant the petitioner one more opportunity to furnish all the necessary information within 30 days. The Commissioner, Income Tax was directed to re-examine the matter based on the provided documents and issue a fresh order within 30 days from the specified date.

5. Specific conditions were imposed on the petitioner regarding the submission of information, including supporting documents, and the Commissioner's right to seek additional explanations or documents to verify the entitlement to claim the exemption under Section 80(G) of the Income Tax Act. Failure to comply within the stipulated time would result in the revival of the earlier refusal order.

6. Additionally, the judgment addressed the consideration of a book titled 'Sikh Ethos' in the impugned order and instructed the petitioner to clarify the institution's charitable status. The Commissioner was directed to evaluate the charitable nature of the petitioner institution without being influenced by any opinions expressed in the book.

In conclusion, the petition was disposed of with the specified directions and conditions for the petitioner to comply with for the reconsideration of the exemption renewal under Section 80(G) of the Income Tax Act.

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