TMI Blog2009 (7) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The Petitioner is registered under the Bombay Public Trust Act, 1950. The aims and objects of the society inter alia includes research in planetary science, astronomy - astrophysics, solar physics and allied subjects. Apart from that other objects are to popularize science among the general public of our country, to conduct short courses on science, astronomy, geography for students and teachers in schools, colleges and universities, to Publish news letters/magazines etc. and other activities as per the 'Trust Deed including to arrange conferences and seminars on science and planetary science, astronomy and astrophysics etc. The society was established on 12 th December, 2000. It has two wings (i) Research Wing and (ii) Wing for popularization of Science. According to Petitioner, they are publishing two popular science magazines (Virat Surya (ii) Kids' Science. It has also five powerful telescopes, mini planetarium and exhibition of a large number of frames. In 2005, the Department of Science and Technology, Ministry of Science and Technology, Government of India has awarded the Indian Planetary Society its very prestigious National Award for carrying out scientific activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Petitioner also applied to the Director of Income Tax Mumbai for renewal of approval under section 35(1)(ii) for the period 1.4.2006 to 31.3.2009. 5. It is the case of the Petitioner that thy were shocked to receive a communication dated 14.8.2006 by Respondent No. 1 rejecting the application for the period 1.4.2003 to 31.3.2006, stating "the basic requirement under section 35(1)(ii) of the I.T. Act of undertaking adequate scientific research activity is not fulfilled". It is the case of the Petitioner that C.B.D.T. has not given any reason or basis or explanation for the same. On 21.8.2006 the D.S.I.T. accorded to the Petitioner renewal of recognition as Scientific and Industrial Research Organization (SIRO) for the period 1.4.2006 to 31.3.2009. The Petitioner after that wrote to C.B.D.T. for review of the order. That was rejected on the ground that there was no provision for review. Petitioner thereafter received communication seeking information about the Petitioner's application for the period 1.4.2006 onwards which the Petitioner has submitted. Correspondence thereafter ensued between the Petitioner and C.B.D.T. By communication of 24.3.2008 the Petitioners application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cientific research, the aggregate of the expenditure so laid out or expended within the three years immediately preceding the commencement of the business shall, to the extent it is certified by the prescribed authority to have been laid out or expended on such scientific research, be deemed to have been laid out or expended in the previous year in which the business is commenced; (ii) an amount equal to one and one-fourth times of any sum paid to a scientific research association which has as its object the undertaking of scientific research or to a university, college or other institution to be used for scientific research; Provided that such association, university, college or other institution for the purposes of this clause - (A) is for the time being approved, in accordance with the guidelines in the manner and subject to such conditions as may be prescribed; and (B) such association, university, college or other institution is specified as such, by notification in the Official Gazette, by the Central Government. (iii)............................................................. Provided........................................... Provided ................... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to other parts. 10. We may only mention that the recognition by the Government of Ministry of Science and Technology to the Petitioner as ISRO entails the Petitioner to avail of customs/excise duty exemption for the activities set out therein. Considering the above, we may now consider the reliefs prayed for and the challenge to the rejection of the application moved by the Petitioners herein. 11. On perusal of provisions of section 35(1)(ii) and the proviso it would be clear that the authority to grant permission is Government of India. In the instant case rejection has been by the Central Board of Direct Taxes. Nothing has been shown before us to show that Central Board of Direct Taxes under the Business Rules of Government of India has been allowed to discharge functions of the Government under section 35(1)(ii). If the provisos of section 35(1) are seen C.B.D.T. Is the prescribed authority in certain cases. However, it certainly is not the organization covered under Section 35(1)(ii). In the absence of any material on this count alone, the order is liable to be set aside and the matter remanded to the Government of India for reconsideration according to law. 12. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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