TMI Blog2014 (1) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... t granted – Decided against assessee. - I.T.A No. 325/Coch/2013 - - - Dated:- 10-1-2014 - Shri N. R. S. Ganesan (JM) And Shri B. R. Baskaran(AM),JJ. For the Appellant : Shri K. I. John For the Respondent : Smt. Latha V Kumar ORDER Per N. R. S. Ganesan (JM) This appeal of the assessee is directed against the order of the Administrative Commissioner dated 29-04-2013 rejecting the application of the assessee for approval u/s 80G of the Act. 2. Shri K.I. John, the ld.representative for the assessee submitted that the trust was granted registration u/s 12AA of the Act on 03-07-2007. The assessee filed an application for approval u/s 80G on 11-03-2008. According to the ld.representative, the Commissioner rejected approval u/s 80G by an order dated 30-09-2008. Being aggrieved by the order of the Commissioner the assessee filed appeal before this Tribunal. This Tribunal by an order dated 25-02-2010 directed the Commissioner to grant approval u/s 80G of the Act. The department carried the matter before the High Court. The High Court, by judgment dated 08-03-2012 set aside the order of the Tribunal and restored the matter to the file of the Commissioner with a direction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmarth Dham Trust vs CIT (2008) 111 ITD 175 (Del)(SB), the ld.representative submitted that if the order was not passed within six months from the date of the application, the registration shall be deemed to have been granted. The ld.representative has also placed reliance on the judgment of the Apex Court in CIT vs Anjum M.H. Ghaswala (2001) 251 ITR 1 (SC). Referring to the judgment of the Punjab Haryana High Court in Sonepat Hindu Educational Charitable Society vs CIT (2005) 278 ITR 262 (P H), the ld.representative submitted that for the purpose of approval u/s 80G of the Act, it has to be found out the real purpose of establishing the trust rather than relying on the object, memorandum and articles of the trust deed. If the Commissioner is satisfied that the object of the trust is charitable, approval should not be denied on mere technicalities. According to the ld.representative, registration of the institution u/s 12AA of the Act is sufficient proof that the object of the trust was for charitable purpose. Therefore, once the registration was granted u/s 12AA of the Act, according to the ld.representative, the assessee is entitled for approval u/s 80G of the Act. The ld.rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions. On the basis of the submissions, the Commissioner passed the impugned order rejecting the application for approval u/s 80G of the Act. Since the proceedings were not completed on 17-10-2012, the observations made by the Commissioner, who was holding additional charge are not the final observation; it was subject to further proceedings. 7. Referring to the income and expenditure account filed by the assessee, the ld.DR pointed out that no amount was spent for charitable purpose. All explanations were relating to charity activities, which are religious in nature. Therefore, the contention of the assessee that 95% of the income was used for charitable purpose is not supported by any material available on record. According to the ld.DR, the observations made by the Commissioner, who was holding additional charge with regard to utilization of income are contrary to the materials available on record. Therefore, according to the ld.DR, the assessee has not complied with the conditions prescribed u/s 80G(5B) of the Act. 8. We have considered the rival submissions on either side and also perused the material available on record. In the first round of litigation, the assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. He also made a written submission which is filed. Case discussed." 11. Another order sheet entry dated 29-04-2013 reads as follows: "Application u/s 80G rejected. Orders issued." 12. From the reading of the above order sheet entries filed by the assessee which were said to be obtained under R.T.I. Act shows that the case was posted on 16-10-2010 and no entry was made. Had the assessee produced the books of account as per the posting of the case, the entry should have been made on 16-10-2012. Otherwise, the case should have been adjourned to 17-10-2012. However, there is no entry for adjourning the case to 17-10-2012. The entry as extracted above was made on 17-10-2012 without any reference to the posting of the case. Therefore, it creates a doubt whether the Commissioner had really examined the books of account and made the entry. If the Commissioner is satisfied about the utilization of the income / donation towards the charitable purpose, he would have granted the registration on 17-10-2012 itself and there was no question of making observations that approval can be granted u/s 80G after verification of the object. Therefore, even if the books of account are verified by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cle Running Expenses 39,616.48 To Interest paid 18,701.00 To Postage 2,451.00 To Depreciation 10,19,558.31 12,98,516.09" 16. For the assessment year 2006-07, the assessee has incurred the following expenditure: "To Opening Stock of Books 15.737.90 To Printing and Stationery 3,766.00 To Travelling Expenses 80,684.00 To Salary and Allowances 38,500.00 To Wages to Watchers 41,000.00 To Repairs and Maintenance 30,652.17 To Bank Charges 406.00 To Nilackal Committee Meeting Expenses 1,823.00 To Church Maintenance Expenses 1,972.00 To Nilackal Retreat Centre Maintenance Expenses 310.00 To Food Refreshment Expenses 24,000.00 To Sundry Expenses 1,621.00 To Telephone Charges 11,129.00 To St. Thomas Day Celebration Expenses 2,300.00 To Insurance Premium 11,485.00 To Vehicle Running Expenses 36,515.44 To Interest paid -- To Postage 2,158.00 To Nilackal Ecumenical Day Expenses 200.00 To Depreciation 9,24,704.79 12,28,964.30" 17. From the above details, it is obvious that the assessee has not spent any money for charitable activity. Even otherwise, the assessee has spent more than 5% of the income for religio ..... 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