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TMI Blog2019 (3) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... to exempt income as Rule 8D has no such provision for proportionate disallowance. 2. Whether on the facts and in the circumstances of the case and in law, the CIT(A) is justified in allowing the donation made u/s.80G when the approval u/s.80G granted to Ashwini Rural Cancer Research and Relief Society was valid upto 30.03.2009? 3. Whether on the facts and circumstances of the case and in law, the CIT(A) failed to appreciate that the application for continuance of recognition u/s.80G was made after the expiry of approval u/s.80G granted till 31.03.2009 and continuance was not obtained by the assessee even after making two applications dated 11.05.2009 ( received on 20.05.2009 and on 30.06.2010.) 4. The appellant craves leave to add, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the disallowance u/s.14A to the extent of Rs. 52,26,096/- as the total expenditure debited to P & L account was Rs. 59,38,148/- and the assessee had already disallowed the amount of Rs. 7,12,052/-. 5. The Ld.CIT(Appeals) observed that during the year under consideration, the assessee company had shown total income of Rs. 32,36,66,738/- out of which the income of Rs. 17,38,69,784/- was claimed as exempt income. The Ld. CIT(A) has directed the Assessing Officer to restrict the disallowance to the amount already disallowed by the assessee plus proportionate of the balance amount of Rs. 52,26,096/- in proportion of the exempt income to the total income. The grievance of the Revenue is that disallowance u/s.14A r.w. Rule 8D does not have any pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 7,12,052/- which is directly relatable to the exempt income and the disallowance out of the balance expenditure of Rs. 52,26,096/- in proportion of the exempt income to the total income. The Assessing Officer was directed to work out the disallowance accordingly. 7. This issue needs further verification and therefore, we set aside the order of Ld.CIT(Appeals) and restore this issue back to his file to adjudicate this issue afresh after providing reasonable opportunity of hearing to the assessee. Thus, ground No.1 raised in appeal by Revenue is allowed for statistical purposes. 8. The second and third grounds in the present appeal is directed against the action of the Ld. CIT(Appeals) in allowing assessee's claim u/s.80G of the Act in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was no response received by the Trust for renewal of its recognition u/s. 80G, the Trust filed a reminder in the matter before the CITIV, Pune on 30-6-2010. While no formal response was received in writing by the Trust, it was given to understand informally that as per Rule 11AA(6) , the time limit for approval had expired, after the period of 6 months of the application submitted in May, 2009. Moreover, as per the new provisions of Section 80G(5) as applicable w.e.f. 1-10-2009, any Trust which had been granted approval earlier was not required to apply for renewal and such approval would be deemed to continue, until it was specifically withdrawn. Thereupon, no further efforts were made for pursuing the renewal application by the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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