TMI Blog2016 (1) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... t supported by reasons and does not suggest that the Tribunal had re-appreciated the facts with reference to the various financial entries found in the order passed by the Commissioner. Whenever an order is passed by a quasi - judicial authorities either upholding or reversing a finding of lower authority, the appellate order must necessarily record cogent reasons with reference to facts and reasons contained in the order assailed before appellate authority. On perusal of the order of the Tribunal, we are of the considered view that the Tribunal has not adverted to the various aspects of factual matrices, which resulted in rejection of application by the Commissioner. Admittedly, the Tribunal is the last fact-finding authority. The Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ENT 1. Revenue has preferred this appeal calling in question the order dated 9.5.2011 in ITA No.150/PNJ/2010 passed by the Income Tax Appellate Tribunal, Panaji Bench, Panaji ('ITAT' for short). 2. This appeal was admitted on 10.12.2012 to consider the following questions of law:- (1) Whether the Tribunal is correct in Law and Facts, holding that the respondent assessee society's action in maintaining separate account in respect of vermicular project without bringing into society's account which is mandatory in view of provisions of Section 11 that assessee should maintain books of account in respect of grants, income received by it and its utilization? (2) Whether the Tribunal is correct in Law and facts, holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the facts of the case? 3. The facts leading to this case are that the respondent filed an application for renewal of exemption under Section 80G of the Income Tax Act, 1961 ['Act' for short] before the Commissioner of Income Tax, Belgaum, who vide order dated 28.3.2010 rejected the said application. It was contended by the respondent that it is running various educational institutions in Bagalkot District. It had also founded a foundation namely., 'S.S. Kadapatti Agriculture and Rural Development Foundation' to undertake Vermiculture Project, which was sanctioned by Government of India involving manufacture of organic manures. In terms of the order passed by the Ministry of Rural Development, the project was to be impl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt before the ITAT, Panaji, which came to be allowed by the impugned order. Hence, this appeal. 4. We have heard Sri Y.V. Raviraj, learned standing Counsel for Income Tax Department and Sri Sangram S. Kulkarni, learned Counsel for the respondent and perused the records. 5. Learned Counsel for the Revenue mainly contends that the exemption under Section 80G is extended to certain institutions, which are doing youmen services. Such exemption is subject to certain conditions, which inter alia include maintenance of proper accounts. 6. Assailing the order of the ITAT, learned Counsel submits that the Tribunal erred in reversing the order of the Commissioner of Income Tax without there being any cogent reasons to do so. He draws our att ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tual matrices of the case insofar as the income, expenditure and maintenance of the accounts by the respondent is concerned, while reversing the findings recorded by the Commissioner. The Tribunal ought to have re-examined the matter afresh and passed the order with cogent reasons fully backed by narration of facts of the case. Hence, the impugned order is liable to be set aside. 8. Per contra, learned Counsel appearing for the respondent while supporting the order of the Tribunal submits that the respondent - assessee is carrying on youmen service and submits that the impugned order does not suffer from any illegality and prays for dismissal of the same. 9. We have given our anxious consideration to the submission made at the bar and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er while rejecting the application has adverted to various aspects of the matter to support his reasoning. They include receipt and expenditure by the Trust and posting of entries in the books of account of Trust. The whole intent and purpose of granting exemption under section 80 to a Trust or an Organisation is to facilitate the donors to get the benefit of tax exemption and at the same time, the Trust or the organisation to get donations. Such a Trust or Organisations which perform their duties to further their aims and objects are duty bound to maintain proper accounts. Admittedly, the applicant was enjoying the benefit of exemption for the previous years. It has taken a definite stand that accounts with regard to the project work is se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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