TMI Blog2015 (6) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... that case, renewal of exemption u/s.80G(5) should not be denied to the assessee. - Decided in favour of assessee. - ITA No. 147/PN/2014 - - - Dated:- 25-2-2015 - Sushma Chowla, JM And R. K. Panda, AM,JJ. For the Appellant : Shri M R Bhagwat For the Respondent : Smt M S Verma, CIT ORDER Per R K Panda, AM. This appeal filed by the assessee is directed against the order dated 27-11-2013 of the CIT-IV, Pune refusing renewal u/s.80G of the I.T. Act. 2. Facts of the case in brief are that the assessee The institute of Nursing Research and Development applied for renewal u/s.80G of the Income-tax Act vide an application which was received by the office of the CIT on 08-05-2013. The assessee filed the requisite documents along with the said application. From the various details filed by the assessee, the Ld. CIT noted that the objects of the assessee trust are stated to be as under: i. To establish and run a Hospital having all facilities for development of Nursing skills. ii. To propagate Medical education and development of Health services on economical basis. iii. To uplift the social status of the Nurses. iv. To improve educational level of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read as the need to take up the issue with the various Departments . The factual mistake has again arisen due to the translation in English from Marathi . 2.2 However, the Ld.CIT was not satisfied with the explanation given by the assessee. He observed that the annual reports for various years clearly show that the assessee trust has resorted to agitations to achieve something which is not reflected in its aims and objects. The word Andolancha in Marathi is clearly mentioned in all these annual reports. The explanation of the assessee vide letter dated 27-11-2013 that the mistake has crept in on account of the translation from Marathi to English is false. He referred to the provisions of section 80G(5), the provisions of section 80G(2) and the provisions of section 2(15). Since the assessee according to him was not found doing any charitable activity, he held that the assessee is not entitled to renewal u/s.80G of the I.T. Act. While doing so, the Ld.CIT relied on the decision of Hon'ble Madhya Pradesh High Court in the case of Khemraj Nemichand Srishrimal Charitable Trust Vs. CIT reported in 231 ITR 43 (MP) where the Hon'ble High Court has held that organizing a rall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and has noted that the assessee instead of doing any charitable work has involved itself all through in an agitational mood and in confrontation with various agencies. He submitted that the accounts of the assessee should be correlated with the charitable activities. However, the income and expenditure account of the assessee trust for the year ending 31-03-2010, a copy of which is placed in the paper book at pages 17 to 20, do not show any charitable activities for the year ending 31-03-2010. Similarly, the income and expenditure account for the year ending 31-03- 2012, a copy of which is placed at page 24 of the paper book, shows very nominal expenditure. Therefore, the assessee trust is not entitled to renewal u/s.80G. He also relied on the decision of the Delhi Bench of the Tribunal in the case of Vidya Institute Vs. CIT reported in 43 SOT 28. 6. The Ld. Counsel for the assessee in his rejoinder submitted that the trust or institution cannot carry out any agitation. It is only the trustees or employees who can do that. In the instant case, all the trustees are past or present nurses who are working free of charge. The Ld.CIT only went through the annual reports showing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust itself. Further such agitation has not been declared illegal or anti national. 7.2 We find the Delhi Bench of the Tribunal in the case of Mayo College Old Boys Association (Supra) while dealing with an identical issue has held that when the certificate granted to the assessee u/s.12A treating it as a charitable institution is subsisting and has not shown to have been withdrawn till date, then in that case, renewal of exemption u/s.80G(5) should not be denied to the assessee. While doing so, the Tribunal has relied on the following decisions : i. N.N. Desai Charitable Trust Vs. CIT 246 ITR 452 (Guj) ii. Sonepat Hindu Educational Charitable Trust Vs. CIT 278 ITR 262 (P H) iii. Gaur Brahman Vidya Pracharini Sabha Vs. CIT (2010) 129 TTJ 627 (Delhi) 7.3 So far as the decision of the Delhi Bench of the Tribunal in the case of Vidya Institute (Supra) is concerned, the same, in our opinion is not applicable to the facts of the present case. In that case, the assessee was a charitable trust established on 12-01- 2006. It applied for grant of registration u/s.12AA which was granted to it. Similarly, it applied for grant of exemption u/s.80G(5). The exemption was allowed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered the rival submissions of the parties and perused the record. The Tribunal, after considering the matter, has found that in fact this sum was given to the assessee trust by K. N. Oil Industries with the specific directions that the money should be utilised for agricultural development purposes, such as, organisation of seminars to enlighten the agriculturists as regards modern techniques of agricultural operations or some sort of programme by which the agriculturists in general are benefited to overcome their existing problems. This letter was written on January 20, 1981, by K. N. Oil Industries, while sending the aforesaid money to the trust. Thereafter, on February 22, 1981, the trustees wrote back to K. N. Oil Industries for sending a substantial contribution for the purpose of agricultural development and in that it was clearly mentioned that one rally of the agriculturists from all over M. P. will be reaching Delhi, where similar rallies from almost all other states of the country will assemble and meet the Prime Minister, Union Agricultural Minister and other officials to apprise them of their various difficulties being faced by them in their day to day agricultur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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