TMI Blog2009 (8) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... d the trust is running a hospital providing medical facilities to those people. The assessee was granted registration under section 12A by the Commissioner of Income-tax, Calicut, through his proceedings dated July 16, 2001. The assessee was also granted eligibility certificate for claiming exemption under section 80G in respect of the donations made to the assessee-trust. The eligibility certificate was granted by the Commissioner of Income-tax at Kannur, through his proceedings dated May 21, 2002. The exemption was granted by the Commissioner for the period from April 1, 2001 to March 31, 2004, relevant to the assessment years 2002-03 to 2004-05. Thereafter, the assessee filed an application before the Commissioner of Income-tax, Kannu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejection of application without giving sufficient opportunity of being heard. 5. The learned Commissioner of Income-tax has not made out a case that the appellant had violated the provision of section 11(2) and 11(5) of the Income-tax Act, 1961. 6. The learned Commissioner of Income-tax ought to have found that the decision reported in 258 ITR 395 is not at all applicable in the facts and circumstances of the case. 7. The order passed by the learned Commissioner of Income-tax is beyond the time limit specified in rule 11AA of the Income-tax Rules. 8. The facts and figures mentioned by the learned Commissioner of Income-tax pertains to a year in respect of which 80G approved already exists and is not relatable to the year in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S.RM.M.CT.M. Tiruppani Trust v. CIT [1998] 230 ITR 636. It is a fact that the assessee-trust was granted registration under section 12A. It is also a fact that the Commissioner of Income-tax had granted exemption under section 80G of the Income-tax Act, up to the period relevant to the assessment year 2004-05. Therefore, it is clear that the Department has accepted, as a matter of fact, that the assessee is a charitable trust entitled to the benefits available under sections 11, 80G and other applicable provisions of law contained in the Income-tax Act, 1961. The dispute arose in the context of renewal application made by the assessee-trust for the period commencing from April 1, 2004. It is the case of the assessee that it has received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d before the tax authorities. In the present case, we find that the assessee has proved beyond doubt that the donations amounting to Rs. 53,41,650 represented corpus donations to the assessee-trust. Therefore, this amount cannot be treated as part of the income of the assessee that should have been necessarily expended for charitable purposes during the relevant period. Once we come to a finding that the donations amounting to Rs. 53,41,650 were corpus donations, the finding of the Commissioner of Income-tax falls down to ground, that the income is more than the expenditure of the assessee-trust. The basis of the finding arrived at by the Commissioner of Income-tax is thus vitiated. Further, it is to be seen that the assessee has alre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report reflected a working regarding the income of the assessee for the assessment years 2005-06, 2006-07 and 2007-08 and a clear finding that the assessee has satisfied all the conditions stipulated in section 11 (2) of the Income-tax Act, 1961. The assessing authority has clearly reported that the donations were received for specific purposes, which form part of the corpus fund of the assessee. The report shows that the Assessing Officer who has conducted a field enquiry and the Joint Commissioner of Income-tax who has made the review of the report, both of them have unanimously concurred in their view that the assessee has not violated any of the provisions, which prevented them from availing the benefit of section 80G(5). The report of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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