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2016 (3) TMI 410

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..... at was expected from it under the relevant provisions of the Act and the Rules made thereunder. The competent authority should have acted vigilantly to pass an appropriate order in the matter within the prescribed time as per sub-rule (6) of the Rule 11AA of the Rules and having not done so, the competent authority has put the assessee in a helpless and embarrassing situation which caused jeopardy against the assessee for no reason or good cause. In the light of above legal dicta and factual discussions and following the decision relied by the assessee, we are inclined to hold that the assessee is entitled for approval u/s 80G of the Act and the competent authority is directed to grant the same. - Decided in favour of assessee - ITA No. 3759/Del /2012 - - - Dated:- 1-2-2016 - SHRI G.D. AGARWAL, VICE PRESIDENT, AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER For The Appellant : Ms. Anima Bernwal, Sr. DR For The Respondent : Shri Rakesh Gupta, Adv, Shri Sonil Agarwal, Adv, Shri Tarun Kumar, ADv ORDER PER CHANDRA MOHAN GARG, JUDICIAL MEMBER This appeal filed by the assessee is directed against the order of the CIT(A), Dehradun denying approval u/s 80G(5)(vi) .....

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..... sed on 31.5.2012 i.e. after 11 months of filing the application by the assessee which is clearly time barred as per sub-rule (6) to Rule 11AA of the Rules. The ld. DR could not assist us about the time taken by the assessee during the proceedings and in the impugned order also this fact has not been noted and appreciated to take shelter of proviso to sub-rule (6) of Rule 11AA of the Act. Hence we are inclined to hold that the assessee did not consume or waste any time during the proceedings which concluded beyond the prescribed time limit. Furthermore, at this juncture, it would be appropriate and necessary to consider the preposition laid down by the ITAT Amritsar Bench in the case of S. Lakha Singh [supra] wherein it was held as under: We have carefully perused the facts of the case, rival submissions and material available on records, including the case law relied upon by the assessee. It is evident from the perusal of the order of the CIT dated 30th April,2010 that the application was made on 15.10.2009 and the Ld. CIT passed an order on 30th April,2010 thereon. However, as per time limit, contemplated under Rule 11AA (6), the impugned order should have been passed within .....

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..... emed grant of registration. 5.3. It is pertinent to reproduce relevant provisions of section 8oG(s)(vi) of the Act, hereunder: Section 8oG(s)(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: Provided that any approval shall have effect for such assessment year or years, not exceeding [five] assessment years, as may be specified in the approval. 5.4. The proviso to the above mentioned section was omitted by the Finance (No.2) 2009 w.e.f. 1.10.2009. Thus, there is no provision for withdrawal of renewal of approval granted by the CIT under section 8oG(s) of the Act. In this context, the corresponding provision as provided under section 12AA(3) reads as under: 12AA(3): Where a trust or an institution has been granted registration under clause (b) of sub-section (1) and subsequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in wr .....

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..... the assessee for applied approval will be evaluated independently and if the answer is affirmative then the assessee would be held eligible for approval u/s 80G of the Act. 7. At this juncture, we find it appropriate to consider the proposition laid down by the ITAT Bench, New Delhi in the case of Mayo College Old Boys Association Vs. DIT(E) [supra] wherein it was held thus: 3. After narrating the facts, it was submitted by the ld. AR that the main object of t society is to encourage education in a broader sense. Reference was made to the decision of Hon'ble Delhi High Court in the case of ICAI Accounting Research Foundation vs. Director General of Income-tax (Exemption) 321 ITR 73 and reference was made to the following observations:- Both the above mentioned Contributions/Receipts received by the association are of incidental activity carried out. After enactment of proviso to Section (15) it is held in the case of ICAI by the honourable High Court of Delhi 321 ITR 73 (Delhi) that It is hardly possible for a charitable trust to work with no source of income - as long as the user of that money is charitable, then the exemption has to be granted merely becau .....

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..... ciety formed for the purpose of establishing educational institution, not for any particular community or cost, having been granted registration under section 12 AA and all the conditions laid down in clauses (i) to (v) of subsection 5 of section 80G having been fulfilled assessee's society is eligible for registration u/s 80G(5)(vi) nowithstanding the fact that it is charging the fee for education. It was also held that scope of enquiry under section 80G extends to eligibility of income and not to actual computation of income under the Act. 5. He also contended that even otherwise the assessee has made donation of ₹ 3,50,000/- which clearly falls within the main objects of the assessee and the donation is given for the purpose of education only. He contended that the said donation of ₹ 3,50,000/- was advanced to the following parties and vide letter dated 9th February, 2010 it was informed to Ld. DIT (E) and copy of such letter is placed at page 11 and 12 of the paper book. SI.No. Beneficiary Chq.No. Amount (in Rs) 1. Mayo College Ajmer-30 .....

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