TMI Blog2001 (12) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... follows: The petitioner is an institution, which was formed on September 11, 1978, for carrying on charitable activities. A certificate of registration under the Societies Registration Act No. XXI of 1860 (hereinafter referred to as "the Societies Act"), was issued to the petitioner on September 11, 1978, in the name of Marie Stopes Society. The name of the petitioner-society was changed to Parivar Seva Sanstha and the certificate of registration under the Societies Act was granted thereto on November 24, 1982. An application for registration under section 12A of the Act and approval was filed on November 5, 1978, by the petitioner before the Commissioner of Income-tax (in short "the CIT"). The certificate of registration under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (in short, "the Rules"), read thus: "80G. (5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely:- (i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 (or clause (22A)) (or clause (23)) (or clause (23AA)) (or clause (23C)) of section 10: Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment or by a university established by law, or affiliated to any university established by law, or is an institution approved by the Central Government for the purposes of clause (23) of section 10, or is an institution financed wholly or in part by the Government or a local authority." "11AA. Requirements for approval of an institution or fund under section 80G.-- (1) The application for approval of any institution or fund under clause (vi) of sub-section (5) of section 80G shall be in Form No. 10G and shall be made in triplicate. (2) The application shall be accompanied by the following documents, namely: (i) copy of registration granted under section 12A or copy of notification issued under section 10(23) or 10(23C); (ii) notes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, any time taken by the applicant in not complying with the directions of the Commissioner under sub-rule (3) shall be excluded." Recognition for purposes of section 80G of the Act is available when an institution or fund satisfies all the five conditions listed under sub-section (5). The aforementioned rule prescribes the procedure for obtaining the said benefit under section 80G of the Act. In terms of the said rule, an application is required to be filed in Form No. 10G whereupon the Commissioner is required to pass an order. The proviso appended to sub-rule (6) of rule 11AA shows that in computing the period of six months, any time taken by the applicant in not complying with the directions of the Commissioner under sub-rule (3) sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orementioned, we are of the opinion that the impugned order cannot be sustained, inasmuch as the grounds on the basis whereof the impugned order has been passed do not have any factual basis and, thus, must be held to be perverse. The view taken by the Commissioner cannot be said to be justified on the material on record. This writ petition is, therefore, allowed. The impugned order is quashed. The Commissioner is directed to consider the application of the petitioner for grant of continuation of approval under section 80G(5) of the Act afresh, as expeditiously as practicable but not later than eight weeks from the date of the order. In the facts and circumstances of the case, there will be no order as to costs. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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