2006 (10) TMI 81 - HC - Income Tax

Deduction u/s 80G CIT(A) directed AO to treat the trust as a charitable trust and delete the addition Department has filed a further appeal against the order of the CIT(A) and the appeal is still pending Court unable to reach final conclusion

Summary

Issues:
1. Consideration of a writ petition filed by Kalinga Foundation Trust.
2. Prayer for approval under section 80G of the Income-tax Act.
3. Dispute regarding the grant of approval due to pending proceedings before the Appellate Tribunal.
4. Order passed by the Commissioner of Income-tax (Appeals) in favor of Kalinga Foundation Trust.
5. Effect of the Commissioner's order on various assessment years.
6. Pending appeal by the Department against the Commissioner's order.
7. Direction by the court for early disposal of the appeal.
8. Disposal of the writ petition with a specific direction.

Analysis:
The High Court considered a writ petition filed by Kalinga Foundation Trust, which shared common aspects with miscellaneous cases. The court noted that except for a specific prayer related to the grant of approval under section 80G of the Income-tax Act, all other matters were resolved. The Revenue's counsel argued against granting the mentioned prayer due to its subjudice status before the Appellate Tribunal. However, the petitioner's counsel highlighted an order by the Commissioner of Income-tax (Appeals) in favor of the Trust, recognizing its charitable nature and independent identity. The Commissioner's order directed the Assessing Officer to treat the Trust as a charitable entity under section 12A of the Act, leading to the deletion of certain additions made earlier. Subsequently, orders were issued for various assessment years in compliance with the Commissioner's decision.

The Revenue informed the court about a pending appeal against the Commissioner's order, creating uncertainty in reaching a final conclusion. Despite this, the court directed the appeal to be expedited, emphasizing a resolution within three months based on the facts discussed in the miscellaneous cases. With this directive, the court disposed of the writ petition without imposing any costs. The judgment underscores the importance of resolving legal matters promptly while acknowledging the significance of the Commissioner's decision in establishing the Trust's charitable status and independent existence.