TMI Blog2013 (10) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... not once but at four occasions and under different provisions of Income Tax Act as well as under companies Act then the objections raised by the DIT are not sustainable – Directed the DIT (Exemption) to grant approval/renewal u/s 80G(5)(vi) of the assessee – Decided in favor of Assessee. - I.T.A. No.3921/Mum/2010 - - - Dated:- 27-9-2013 - Shri Rajendra Singh, AM And Shri Vijay Pal Rao, JM,JJ. For the Appellant : Mr. H. P. Ranina Statira Ranina For the Respondent : Mr. K. C. P. Patnaik ORDER Per : Vijay Pal Rao, JM. This appeal by the assessee is directed against the order dated 9.12.2009 of DIT (Exemption), Mumbai passed u/s 80G of the Income Tax Act. 2. The assessee has raised various grounds in this appeal ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n) has questioned the states of the assessee on the ground that the Foreign Nationals are not allowed to perform work of a trustee as per the provisions of Indian Trust Act. The Ld. AR has urged that the assessee is not registered under the Indian Trust Act but is a company registered u/s 25 of the Companies Act, 1956 which is permissible u/s 80G(5)(v). He has referred the clause (v) of section 80G(5) and submitted that if any fund or institution is established for chargeable purpose and fulfil the condition that the institution registered u/s 25 of Companies Act, 1956 then the donation to such institution is eligible for deduction u/s 80G. Thus, the Ld. AR has argued that the assessee fulfil the condition as provided u/s 80G(5)(v) of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 23.11.2006. The DIT has refused the further renewal mainly on the ground that two of the directors of the assessee company are Foreign Nationals and therefore, such persons are not allow to performing work of trustee of a chargeable institution in India. The DIT s findings are guided by the rules prescribed under Indian Trust Act. Another objection of the DIT was technical one regarding the validity of the application being verified and signed by in competent person. It is pertinent to note that the assessee at the relevant point of time was having three directors namely: Ms. Donna Baker (appointed as Director on March 9, 2004) Ms. Nirupa Bhatt (appointed as Director on February 11, 2009) Mr. David Tearle (appointed as Direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d if it fulfils the following conditions, namely:- (i) .. (ii) . (iii) (iv) (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 affiliated to any University established by law, or is an institution finance wholly or in part by the Government or a local authority. 7. It is clear from clause (v) of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to March 31, 2004. Again the same benefit was continued by an order dated September 17, 2004, with effect from April 1, 2004 to March 31, 2007. It means the donors, who make donations to the respondent trust, are also entitled to get benefit of deduction of the said donation from their income as per the provisions of section 80G for the purpose of the income tax. It clearly shows that the Government is fully satisfied that the activities of the respondent are for charitable purposes and, therefore, not only the respondent is registered under section 12A as the charitable trust and entitled to benefit of exemption under section 11, even the donors are also given the benefit under section 80G. Changes in the respondent trust took place with t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
