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TMI Blog2011 (4) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, we direct Ld. DIT (E) to grant the renewal to the assessee u/s 080G. - I. P. Bansal (Judicial Member) And K. G. Bansal (Accountant Member) For the Petitioner : S. K. Seth For the Respondent : K. Ravi Ramachandran ORDER I. P. Bansal (Judicial Member) This is an appeal filed by the assessee. It is directed against the order passed by the Commissioner of Income-tax, Faridabad dated 12th November, 2008 u/s 80-G of IT Act, 1961 read with Rule 11AA (5) of Income-tax Rules, 1962. The grounds of appeal read as under:- 1. On the fats and in the circumstances of the case the learned CIT has erred in law by treating the activity of the society under the advancement of any other object of general public utility thereby applying proviso to section 2 (15) inserted w.e.f. 01.04.2009 whereas the sole aim of the society is education. 2. The Learned CIT has erred in law by rejecting the application for relief u/s 80-G. 3. Any addition, alteration, deletion or amendment in the grounds of appeal may please be allowed. grounds of appeal may please be allowed. 2. The assessee society was established on 7th January, 1971. It was continuously enjoyi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngth on this issue and the short issue culled out from their argument was that whether during the subsistence of registration u/s 12A which recognize that the assessee is an institution carrying on charitable activity, whether renewal of exemption u/s 80-G should be denied. For this purpose, the hearing of 19th April, 2011 was adjourned to 20th April, 2011 to enable learned DR to submit his submissions on that issue. On 20th April, 2011, learned DR relying upon the order passed by the CIT, pleaded that the assessee s activity does not fall within the ambit of charitable activity, hence, CIT was right in denying renewal of exemption u/s 80G. 5. On the other hand, it was submitted by learned AR that the assessee is an educational institution existing purely for educational purposes. Referring to the statement of facts filed along with the appeal, he submitted that the assessee is running various educational institutions which are also recognized by the Government bodies and Universities and the total strength of the students of the assessee is 6550. He submitted that apart from those activities the assessee does not carry out any other activity. The amendment in the objects could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry old and established association formed for charitable purpose and carrying out various activities in the field of Education, etc. 3. That the learned Director of Income Tax (E) has rejected the application without understanding the essence/logic of Sec 2 (15) of the Income Tax Act, 1961 and concluded his finding without verifying the complete facts of the case. 2. The assessee in the present case is a society registered with Registrar of Societies, Delhi Administration, Delhi vide Sl. No.10776 of 1980 w.e.f. 8th day of February, 1980. Copy of certificate is filed at page 5 of the paper book. The assessee is also registered as a charitable institution by the Director of Income-tax (Exemptions), New Delhi vide order passed u/s 12A read with Section 12AA (1) (b) of the Income-tax Act, 1961 dated 15th September, 2000 w.e.f. 1.4.1999 (copy of certificate placed at page 6 of the paper book). It also was granted exemption u/s 80G initially from 27th March, 2000 to 31st March, 2002 vide letter dated 15th September, 2000, copy of such letter is placed at page 7 of the paper book. The said exemption u/s 80G was renewed for the period from 16th April, 2003 to 31st March, 2006 vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing these projects would not alter the character of these projects. The amended definitions of charitable purpose would not alter these positions. 4. He contended that the activity carried on by the assessee fall within the definition of Section 2 (15) and he also relied upon the Circular No.395 dated 24th September, 1984 to contend that the object of general public utility also falls within the ambit of charitable purpose and, therefore, the associations or institutions engaged in the promotion of sports and games and claim exemption u/s 11 of the Act, even if it is not approved u/s 10 (23) relating to exemption from tax of sports associations and institutions having their object as, the promotion, control and regulation and engagement of specified sports and games. In the alternative, it was pleaded by Ld. AR that grant of renewal of exemption u/s 80G, during the subsistence of 12AA cannot be denied on the ground that the assessee does not carry on any charitable activity. For this purpose, he has placed reliance on the following decisions:- NN Desai Charitable Trust vs. CIT 246 ITR 452 (Guj) : authority examining the question whether a fund or institute is eligible to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Sisters of the People, Lajpat Bhawan, Lajpat Nagar New Delhi 110 024. 434280 1,00,000 434284 1,00,000 3. Chaudhari Trust, 29, Hanuman Road, N Delhi. 434286 50,000 Total 3,50,000 6. Thus, he pleaded that the claim of the assessee has wrongly been rejected by DIT (E). 7. On the other hand, Ld. DR relied upon the order passed by DIT (Exemption). He submitted that the assessee did not carry out any charitable activity, hence, his claim for renewal u/s 80G was rightly rejected by the DIT (E). 8. We have carefully considered the rival submissions in the light of the material placed before us. The certificate granted to the assessee u/s 12A treating it as charitable institution is subsisting and has not been shown to have been withdrawn till date. If it is so, then, in our considered opinion, renewal of exemption u/s 80G(5) could not be denied to the assessee and the case relied upon by Ld. AR and reproduced in the above part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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