TMI Blog2013 (12) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... been incurred only with regard to running of the school - The assessee has not been able to place any document on record to show that the assessee is actually utilizing the funds towards charitable activities - During the course of carrying on charitable activities, the charitable institution may earn some income but the income so earned has to be utilized for charitable purposes only – Decided against assessee. - ITA No.1844/Mds/2012 - - - Dated:- 31-1-2013 - Shri Abraham P.George And Shri Vikas Awasthy,JJ. For the Appellant : Mr. S. Sridhar, Advocate For the Respondent : Mr. Shaji P. Jacob, Addl. CIT ORDER Per Vikas Awasthy, JM:- The appeal has been filed by the assessee impugning the order of the CIT-I, Trichy dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The scope of section 80G is limited and thus the CIT cannot re-appreciate the objects against which registration has been granted to the assessee. In order to support his contentions, the counsel for the assessee relied on the following judgements of various High Courts:- i) Ecumenical Christian Centre v. Commissioner of Income-tax reported as 139 ITR 226 (KAR.) ii) Orpat Charitable Trust v CIT reported as [2002] 256 ITR 690 (Guj) iii) N.N. Desai Charitable Trust vs. CIT reported as 246 ITR 452 (Guj) iv) CIT Vs. Rajmala Educational Society reported as 65 DTR 307 (P H) The counsel contended that merely because there is surplus of income with the assessee trust cannot be a ground to reject exemption under section 80G. The counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decisions i.e. in the case of Ecumenical Christian Centre (supra), Orpat Charitable Trust (supra) and N.N. Desai Charitable Trust (supra) relate to grant of registration under section 12AA whereas the decision in Rajmala Educational Society, relates to section 80G, but the facts and circumstances of the case in hand are entirely different from the one adjudicated by the Hon'ble Punjab Haryana High Court. The DR contended that rather there are judgements of the Hon'ble Delhi High Court reported as Kirti Chand Tarawati Charitable Trust vs. Director of Income Tax (Exemptions) reported as 232 ITR 11 and the judgement of the Hon'ble Patna High Court in the case of Madani Musafir Khana Welfare Society Vs. CIT reported as 264 ITR 481 to suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y relatable to the running of the hostel, ITI, school, Centre, etc. Although it is shown that there is excess of expenditure over income, for the years ending 31.03.2009 31.03.2010, there Is a surplus of income over expenditure earned to the tune of Rs.34,01,445/- Gross Receipts of the society for these years were Rs.3,65,99,748/- Rs. 3,01,39,572/- Rs. 3,66,37,960/- which includes Foreign Fund Receipts were Rs.1,17,12,402/- , Rs. 77,97,907 Rs.1,44,29,813 respectively. 2.2 xxxxxxxxxx 2.3 xxxxxxxxxx 2.4 xxxxxxxxxx 2.5 The income of a public charitable trust comprises of income out of property held by the trust. Such income may include (i) voluntary donations from the public - section 12(1), (ii) profit of any commercial activity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surplus of income over expenditure to the tune of Rs. 34,01,445/-. The gross receipts of the assessee society for the three years were Rs.3,65,99,748/-, Rs.3,01,39,572/- and Rs.3,66,37,960/- respectively which include foreign fund receipts. 9. The learned counsel for the assessee has contended that the amount received from foreign contribution, Central and State Government, Boards etc. is being used for relief to poor irrespective of cast, religion, sex and in various rehabilitations, prosthetic health centres etc. However, the contentions made on behalf of the assessee are not substantiated by any documentary evidence. Even before the Tribunal the assessee has not been able to place any document on record to show that the assessee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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