TMI Blog2012 (5) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Appellant. D.K. Mishra for the Respondent. ORDER A.N. Pahuja, Accountant Member This appeal filed on 11.12.2009 by the assessee against an order dated 6th November, 2009 of the learned CIT, Meerut, raises the following grounds:- 1. "For that the learned CIT Meerut has erred in rejecting the registration, renewal of approval u/s 80G(5) of Income-tax Act. 2. For that the order passed by the CIT, Meerut is illegal and against the facts of the case. 3. For that the appellant seeks the leave to take up such further grounds, which may be necessary in the interest of justice at the time of hearing of appeal." 2. Facts, in brief, as per relevant orders are that the assessee society submitted an application on 15.5.2009, seeking extension of approval granted u/s 80G of the Income-tax Act, 1961 (hereafter referred to as the Act) for the period after 31.3.2009. The assessee was, earlier, allowed approval u/s 80G for the period 01.04.2008 to 31.03.2009 vide order dated 15.10.2008. The assessee society was registered u/s 12A of the Act on 18.1.2007 in terms of their application for registration filed on 7.7.2006. During the course of hearing of the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arties and gone through the facts of the case as also the decisions relied upon by both sides. Indisputably, the applicant educational society, registered u/s 12A of the Act on 18.1.2007 and running a school by the name Renaissance School in Bulandshahr, is filing return of income since the AY 2000-01,claiming exemption u/s 10(23C) of the Act. The assessment for the AY 2000-01 was completed vide order dated 24.3.2003 on a loss of Rs. 2,60,660/- and claim for exemption u/s 10(23C)(iiiad) of the Act was denied. However, on appeal, the ld. CIT(A) allowed the claim for exemption. For the AY 2001-02, the AO himself accepted the claim for exemption u/s 10(23C)(iiiad) of the Act. For the AYs 2002-03 to 2009-10, the returns filed by the society appear to have been accepted . Inter alia, the society was approved u/s 80G(5)(vi) of the Act for the period 9.2.2007 to 31.3.2009. Thus, nowhere the claim for exemption u/s 10(23C)(iiiad) has been denied . Even when the registration u/s 12A of the Act has not been withdrawn, the ld. CIT declined to renew the approval u/s 80G(5)(vi) of the Act for the period after 31.3.2009 on the ground that land on which building was constructed by the society , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r fund maintains regular accounts of its receipts and expenditure; ( 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 financed wholly or in part by the Government or a local authority; ( vi ) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being approved by the Commissioner in accordance with the rules made in this behalf; and ( vii ) where any institution or fund had been approved under clause (vi) for the previous year beginning on the 1st day of April, 2007 and ending on the 31st day of March, 2008, such institution or fund shall, for the purposes of this section and notwithstanding anything contained in the proviso to clause (15) of section 2, be deemed to have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r granting approval under section 80G(5)( vi ) of the Act, the society has to satisfy that, it is established in India for a charitable purpose and the conditions stipulated under provisions of section 80G(5)(i) to (vi ) are to be additionally fulfilled. If on enquiry, it is established that the activities of the society are not confined and limited to the objects of the society and has violated provisions of section 80G(5)( i ) to ( vi ) of the Act, the renewal of recognition under section 80G can be denied The Revenue have not placed before us any material, suggesting that the assessee society did not fulfill the conditions stipulated under the aforesaid section 80G(5) and rule 11AA thereunder. There is nothing to suggest that any part of income or property of the society was used or applied directly or indirectly for the benefit of any person referred to in section 13(3) of the Act. Hon'ble Gujarat High Court in the case of N.N. Desai Charitable Trust ( supra ) held that the ld. CIT cannot act as Assessing Officer. The enquiry should be confined to find out if the institution satisfies the prescribed conditions and the actual assessment of the institution would not affect the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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