9911796707
TMI Blog2013 (12) TMI 1248X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by it directly or indirectly for the purpose of such business - The Commissioner did not record any such finding that the funds, which was earmarked and was kept in separate account in fixed deposit was not used by the respondent assessee directly or indirectly - There was no occasion to misuse the funds as the hospital had not yet started and thus the plant and machinery could not be purchased from the grant, which was kept in fixed deposit - Decided against Revenue. - Income Tax Appeal No. - 433 of 2008 - - - Dated:- 13-7-2012 - Hon'ble Sunil Ambwani And Hon'ble Aditya Nath Mittal,JJ. For the Petitioner : A. N. Mahajan, D Awasthi For the Respondent : A. Bansal,S. K. Garg ORDER We have heard Shri Dhananjay Awasthi for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll have to be spent by the hospital from out of its own funds. The assessee could not utilise the fund during the year and requested for extension of time. The extension was granted by the State Government for the period upto 31.12.2004. The Tribunal found that the application of assessee for further extension of time is pending with the State Government. A dispute between assessee, regarding the borrowings from the banks was pending in the civil court in which an order was passed by the Addl. District Judge directing the petitioner to enter into an agreement for loan and for equitable mortgage of the property with a nationalised bank or government owned financial institution. The petitioner was required to furnish details of such agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsion of approval. In our considered view, C.I.T. has proceeded on wrong foundation by presuming that grant given by the State Govt. would become income of the assessee without considering this aspect that this was not for the revenue account, but was for the corpus of the trust with specific condition to purchase specific plant and machinery. Once such grant cannot become income of the trust, then provisions of section 80G(5) (i) cannot be invoked. Accordingly order of C.I.T. is set aside. He is directed to consider the application afresh and allow approval to the assessee as per law. In the result, appeal is allowed. The above decision was announced in the court on 31.12.2007." Section 80G (5) of the Act provides as follows:- "80G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come or assets of the institution or fund for any purpose other than a charitable purpose; (iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; (iv) the institution or fund maintains regular accounts of its receipts and expenditure; [* * *] (v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or aff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness, the CIT (A) was justified in rejecting the application for renewal under Section 80G. Shri Ashish Bansal on the other hand submits that under Section 11 (1) (d), income in the form of contribution made with specific direction that they shall form part of the corpus of the trust or institution, is exempt. He submits that requirement for approval of an institution or fund under Section 80G is provided under Rule 11AA of the Income Tax Rules, 1962. Where the Commissioner is satisfied that all the conditions laid down in Clauses (i) to (v), sub-section (5) of Section 80G are fulfilled, by the institution or fund, they shall record such satisfaction in writing in grant of approval as required under sub-rule (4). In the present case he ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
