Agrasain Education Trust, Howrah V. DIT, Exemption, Kolkata, Kolkata

ITA 1150/KOL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9401 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2011
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 09-06-2010
• Court: TRIBUNAL
• Department Lawyers: S C JAIN
• Keywords: Charitable institution; Opportunity of being heard

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL BENCH : KOLKATA () BEFORE . . . . . . . . , , , , , !' !' !' !' /AND . .. . . .. .! !! ! , # ) [BEFORE HONBLE SRI D. K. TYAGI, JM & HONBLE SRI C . D. RAO, AM] '$ '$ '$ '$ / I.T.A NO. 1150/KOL/2010 %&' !() %&' !() %&' !() %&' !()/ // / ASSESSMENT YEAR : AGRASAIN EDUCATION TRUST -VS- DIRECTOR OF INCOM E-TAX (EXEMPTION) (PA NO.AABTA 0419 Q) KOLKATA. ( +, /APPELLANT ) (-+,/ RESPONDENT ) FOR THE APPELLANT: SRI SHREYA LOYALKA FOR THE RESPONDENT : SRI S. C. JAIN . / ORDER PER D. K. TYAGI, JM ( . . . . . . . . , , , , ) THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE LD. DIT(E), KOLKATA DATED 04.05.2010 REJECTING THE APPL ICATION FILED BY THE ASSESSEE IN FORM NO. 10G SEEKING RENEWAL OF EXEMPTION U/S. 80G(5)(VI ) OF THE I. T. ACT, 1961. THE LD. DIT(E) WHILE REJECTING THE RENEWAL OF EXEMPTION HAS OBSERVED THAT THE ASSESSEE TRUST HAD FAILED TO APPLY ITS INCOME TOWARDS ITS OBJECTS AS PER STATUTORY NORMS. HENCE, ADDL. DIT(E), KOLKATA HAD NOT RECOMMENDED THE CASE FOR F URTHER RENEWAL. BEFORE THE LD. DIT(E), LD. A.R APPEARED AND SUBMITTED SOME DOCUMEN TS AND ACCORDING TO THE LD. DIT(E) THE DOCUMENTS SHOWN BY THE LD. A.R. SHOWS LE SS THAN 85% OF EXPENDITURE FOR CHARITABLE PURPOSE. THUS, HE HELD THAT THE REQUIRE MENT UNDER LAW FOR UTILIZATION OF FUNDS FOR CHARITY IS NOT MET AND ACCORDINGLY, HE REJECTED THE APPLICATION OF THE ASSESSEE FOR RENEWAL OF EXEMPTION U/S. 80G(5)(VI) OF THE I. T. A CT. 2. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE SUBM ITTED THAT THE LD. DIT(E) WHILE PASSING THE ORDER REFUSED TO GRANT RENEWAL OF EXEMP TION U/S. 80G(5)(VI) ON THE GROUND THAT 85% OF THE INCOME WAS NOT APPLIED FOR CHARITAB LE PURPOSE. IN THIS REGARD, HE SUBMITTED THAT THE ABOVE FACT IS WHOLLY INCORRECT. THE ASSESSEE HAS PRODUCED A CHART SHOWING THAT THE ASSESSEE HAS UTILIZED 85% OF ITS I NCOME FOR CHARITABLE PURPOSE AS PER EXPLANATION 2(II) TO SECTION 11(1) OF THE ACT. SHE, THEREFORE, PRAYED BEFORE THE BENCH TO ALLOW THE EXEMPTION U/S. 80G(5) OF THE ACT. 2 3. ON THE OTHER HAND, THE LD. DR HEAVILY PLACED REL IANCE ON THE ORDERS OF THE LOWER AUTHORITIES. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MAT ERIAL AVAILABLE ON RECORD. WE FIND THAT THE LD. DIT(E) REJECTED THE ASSESSEES AP PLICATION FOR RENEWAL OF EXEMPTION U/S. 80G(5)(VI) OF THE ACT BY OBSERVING THAT THE AS SESSEE TRUST DID NOT APPLY 85% OF ITS INCOME FOR CHARITABLE PURPOSE. TO REBUT THIS FINDIN G OF THE LD. DIT(E), THE ASSESSEE HAS FILED A CHART, AT THE TIME OF HEARING BEFORE US, SH OWING THE UTILIZATION OF 85% OF ITS INCOME FOR CHARITABLE PURPOSES, AS PER EXPLANATION 2(II) OF SECTION 11(1) OF THE ACT. SINCE THIS SUBMISSION OF THE ASSESSEE REQUIRES VERI FICATION, WE RESTORE THE MATTER BACK TO THE FILE OF THE LD. DIT(E) TO PASS A FRESH ORDER AF TER TAKING INTO CONSIDERATION THE ASSESEES SUBMISSIONS. NEEDLESS TO SAY THAT THE AS SESSEE SHOULD BE GIVEN SUFFICIENT OPPORTUNITY OF BEING HEARD IN THE MATTER. THE APPEA L OF THE ASSESSEE IS, THEREFORE, ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. 6. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- . . ! , # . . , (C. D. RAO) (D. K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER ( # # # #) )) ) DATED : 14 TH JANUARY, 2011 !/0 %&12 %3! JD.(SR.P.S.) . 4 -%%5 65(7- COPY OF THE ORDER FORWARDED TO: 1 . +, / APPELLANT M/S. AGRASAIN EDUCATION TRUST, LAXMI NIKETAN, 243, G.T, ROAD (NORTH), LILUAH, HOWRAH-711 204 2 -+, / RESPONDENT, DIT (EXEMPTION), KOLKATA. 3 . %.& / THE ADDL. DIT(E), KOLKATA 4. %.& ( )/ THE CIT(A), KOLKATA. 5 . !=% -%& / DR, KOLKATA BENCHES, KOLKATA 5 -%/ TRUE COPY, .&>/ BY ORDER, ? '2 /DEPUTY REGISTRAR .