TMI Blog2019 (3) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... exempt income and the disallowance out of the balance expenditure in proportion of the exempt income to the total income. The Assessing Officer was directed to work out the disallowance accordingly. This issue needs further verification and therefore, we set aside the order of Ld.CIT(Appeals) and restore this issue back to his file to adjudicate this issue afresh Disallowance u/s.80G - renewal application unanswered - Ahwini Rural Cancer Research & Relief Society had received its earlier recognitions u/s.80G from time to time and the last recognition granted was for the period 01.04.2006 to 31.03.2009 - HELD THAT:- We find that in the assessment order dated 03.03.2014 passed u/s.143(3) of the Act in the case of the Trust i.e. Ashwani Rur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wo applications dated 11.05.2009 ( received on 20.05.2009 and on 30.06.2010.) 4. The appellant craves leave to add, amend or alter any of the above grounds of appeal. 2. Brief facts of this case are that the assessee-company is engaged in the business of dealing in Shares and Securities and investment in various banks and companies by way of deposit. The assessee filed return of income for the AY 2010-11 on 29.09.2010 declaring total loss of (-) ₹ 13,74,17,594/-. The case was selected for scrutiny under CASS. The assessment u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) was completed on 08.03.2013 determining total loss of (-) ₹ 15,38,99,760/- by making the following additions/disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance amount of ₹ 52,26,096/- in proportion of the exempt income to the total income. The grievance of the Revenue is that disallowance u/s.14A r.w. Rule 8D does not have any provision for proportionate disallowance. 6. We have perused the case record and heard rival contentions. It is the decision of the Assessing Officer that Clause (ii) of sub-rule 2 of Rule 8D is not applicable in this case and the assessee has already made disallowance of ₹ 5,80,742/- under clause (i) i.e. expenditure directly related to the exempt income. According to the Assessing Officer, assessee s case was covered under Rule 8D(2)(iii). Rule 8D(2)(iii) reads as under: An amount equal to one half percent of the average of the value of investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Revenue is allowed for statistical purposes. 8. The second and third grounds in the present appeal is directed against the action of the Ld. CIT(Appeals) in allowing assessee s claim u/s.80G of the Act in respect of donation of ₹ 1,50,00,000/- given to Ashwini Rural Cancer Research and Relief Society. The Ld. CIT(Appeals) granted relief to the assessee on the basis of reasons as contended in Para 6.3 of his order after appreciating the facts of the case, written submissions filed by the assessee and assessment order. The Ld. CIT(Appeals) while granting relief to the assessee followed the ratio laid down by the Hon'ble High Court of Allahabad in the case of Society for promotion of Education which was approved by the Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier was not required to apply for renewal and such approval would be deemed to continue, until it was specifically withdrawn. Thereupon, no further efforts were made for pursuing the renewal application by the said Trust. 11. In the paper book filed before us on page 41 to 43 wherein a Copy of the I.T. Assessment Order dated 3-3-2014 passed u/s. 143(3) in the case of the Trust for A.Y. 2011-12 as furnished by the Trust has been duly compiled. Para 3 of the said assessment order clearly notes the fact that the said Trust enjoyed valid approvals both for purposes of Sec. 12A and Sec. 80G and based thereon, the Returned Income as declared by the Trust at Rs. Nil was treated as exempt. 12. We have perused the case record and analyz ..... X X X X Extracts X X X X X X X X Extracts X X X X
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