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TMI Blog2013 (10) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the renewal/registration u/s 80G to the assessee when the registration u/s 80G as well as u/s 12A was already granted". The assessee is a company incorporated in India and has obtained licence u/s 25 of companies Act, 1956 as an educational institution existing for charitable purpose and not for the purpose of profit. The assessee was also granted registration/approval u/s 80G(5)(vi) of the Income Tax Act vide order dated 27.12.2004 which was renewed up to 31.3.2009 vide order dated 23.11.2006. The assessee filed an application dated 20.3.2009 which was received in the office of DIT on 24.3.2009 for renewal of approval granted u/s 80G(5)(vi). The DIT rejected the application for renewal of approval vide impugned order dated 9.12.2009. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct then domicile of the director of the assessee company is not relevant. He has relied upon the following decision: Indo American Society Vs ADIT(Exemption) 278 ITR 49 CIT Vs Rajnessh Foundation 280 ITR 553 (Bom.) Grameen Initiative for Women Vs DIT(E), Mumbai, ITA No. 1937/M/2009 dated 3.5.2011 4. On the other hand, the Ld. DR has relied upon the impugned order of the DIT and submitted that the assessee having the directors of Foreign Domicile/Nationals which violates the rule prescribed under Indian Trust Act. Further the DIT has held that the Foreign Nationals are not competent to make the application for granting approval u/s 80G. 5. We have considered the rival submissions and carefully perused the relevant material on record. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnexed to the formal application has been verified and signed by one Nirupa Bhatt, Director of the assessee. When the application under 10G has been duly verified and signed by the authorised persons who was also director of the assessee at the relevant point of time then we do not find any substance in the technical objection raised by the DIT. Moreover, the defect in signing/verification of the application is a curable defect which could have been rectified if the competent authority thinks so. The view of the DIT that the defect is not curable is against the settled principle of law as the DIT has not granted any opportunity to the assessee to either rectified or to explain the so called defect, if any, in the application. Therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 25 of Companies Act 1956 is eligible for approval u/s 80G(5)(vi) in relation to donations made after 31.3.1992. Thus under the provisions of section 80G(5) there is no such condition or prohibition of a director of a company granted approval u/s 25 of the Companies Act shall not be a Foreign National. Even otherwise the trustee is the assessee company and not the directors therefore, when the approval u/s 80G(5)(vi) was already granted twice and there is no subsequent change in the facts and circumstances then the refusal of the renewal of the approval by the DIT(Exemption) is not based on any legal provisions of law inforces. In the case of CIT Vs Rahjesh (supra) the Hon'ble Jurisdiction High Court has observed in para 25 and 26 as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod after the said amendment. If on the basis of the said trust deed, the Government could give exemption under section 11 as also under section 80G by the subsequent orders, the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal were fully justified in holding that the respondent is entitled to get exemption under section 11 for the relevant assessment year. 26. In view of the above circumstances, we find that the objects of the respondent are charitable within the meaning of section 2(15) and the Income Tax Appellate Tribunal was right in holding that the respondent is entitled to exemption under section 11 of the Income Tax Act. In the result, we answer the substantial question of law in the affirmative and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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