SHIV RATAN RATHI FOUNDATION, Kota V. CIT, Kota

ITA 1242/JPR/2010

• Counselvise Citation: 124223114 RSA 2010
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 21-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBHASH CHANDRA
• Assessee Lawyers: B V MAHESHWARI
• Section: 80G

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR (BEFORE SHRI R.K.GUPTA AND SHRI N.L.KALRA) ITA NO.1242/ JP/2010 SECTION 80G PAN: AACTS 5657 B M/S. SHIV RATAN RATHI FOUNDATION VS. THE CIT 5, JHALAWAR ROAD, KOTA KOTA (APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI B.V. MAHESHWARI DEPARTMENT BY : SHRI SUBHASH CHANDRA ORDER PER N.L. KALRA, AM:- THE ASSESSEE HAS FILED AN APPEAL AGAINST THE OR DER OF THE LD. CIT, KOTA DATED 14-09-2010. 2.1 THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE A RE AS UNDER:- 1. THAT THE LD. CIT, KOTA HAS GROSSLY ERRED IN REJECTING APPLICATION FILED BY SHIV RATAN RATHI FOUNDATION (WRONGLY MENTIONED AS SHRI RATAN RATHI FOUNDATION IN THE GROUNDS OF APPEAL) FOR GRANT TO EXEMPTION U/S 80G(5) OF INCOME TAX ACT, 1961. 2. THAT THE LD. CIT, KOTA HAS ERRED IN HOLDING THAT THE ACTIVITIES OF THE SHIV RATAN RATHI FOUNDATION (WRON GLY MENTIONED AS SHRI RATAN RATHI FOUNDATION IN THE GRO UNDS OF APPEAL) ARE IN-GENUINE AND IT IS NOT ENGAGED IN CHARITABLE ACTIVITIES. 2 2.2 THE ASSESSEE WAS GRANTED REGISTRATION U/S 12A(A ) OF THE ACT VIDE ORDER DATED 10 TH MARCH, 1999. THE ASSESSEE WAS ALSO GIVEN APPROVAL U/S 80G FOR THE PERIOD FROM 1-4-2007 TO 31-03-2010. FOR FURTHER EXT ENSION OF APPROVAL U/S 80G, THE ASSESSEE FILED AN APPLICATION ON 19-03-201 0. ON THIS APPLICATION, THE LD. CIT HAS NOT ALLOWED APPROVAL. THE LD. CIT N OTICED THAT THE ASSESSEE IN THE FINANCIAL YEAR 2007-08 RECEIVED THE DONATION OF RS. 14.53 LACS AND OUT OF WHICH A SUM OF RS. 11,34,061- WAS SPENT ON BHAGWAT KATHA. THE LD. CIT WAS OF THE OPINION THAT ASSESSEE IS NOT A CHARITABL E TRUST BUT A RELIGIOUS TRUST AND ACCORDINGLY HAS NOT APPROVED THE TRUST FOR THE PURPOSE OF SECTION 80G OF THE ACT. 2.3 WE HAVE HEARD BOTH THE PARTIES. THE ASSESSEE HA S FILED THE INCOME AND EXPENDITURE ACCOUNT FOR THE FINANCIAL YEAR 2006-07, 2007-08 AND 2008-09. IT IS TRUE THAT THE ASSESSEE RECEIVED DONATIONS OF RS. 14,53,300/- IN THE FINANCIAL YEAR 2007-08. IT WAS STATED THAT THE PROGRAMME OF BHAGWAT KATHA WAS FOR ALL THE PERSONS OF DIFFERENT RELIGIONS AND THE DONA TIONS WAS RECEIVED FOR CONDUCTING SUCH BHAGWAT KATHA. IT IS NOT THE CASE OF THE REVENUE THAT THE PERSONS WHO HAVE GIVEN THE DONATIONS HAVE CLAIMED T HE DEDUCTION OUT OF TAXABLE INCOME. IN OTHER FINANCIAL YEARS, THE DONAT IONS ARE TO THE EXTENT OF RS. 1,65,700/- AND RS. 72,307/-. 3 2.4 THE CBDT VIDE ITS CIRCULAR NO.7/2010 DATED 27-1 0-2010 HAS REFERRED TO THE AMENDMENT MADE IN SECTION 80G(5) AS PROVISO TO SECTION 80G(5)(VI) HAS BEEN OMITTED . EARLIER LD. CIT WAS TO ALLOW THE APPROVAL U/S 80G FOR FIVE YEARS. DUE TO REMOVAL OF PROVISO, THE BOARD HAS CLA RIFIED THAT THE EXISTING APPROVAL EXPIRING ON OR AFTER 1-10-2009 SHALL BE DE EMED TO HAVE BEEN EXTENDED IN PERPETUITY UNLESS SPECIFICALLY WITHDRAW N. THUS THE ASSESSEE WAS NOT REQUIRED TO REQUEST FOR APPROVAL U/S 80G OF THE ACT AND THE APPROVAL GRANTED EARLIER UPTO 31-03-2010 IS TO BE TREATED AS IN PERPETUITY. THUS THE ORDER OF THE LD. CIT IS NOT VALID IN VIEW OF BOARD S CIRCULAR NO. 7/2010. HENCE THE ORDER OF THE LD. CIT IS CANCELLED AS THER E IS NO REQUIREMENT OF GRANTING APPROVAL. IT IS NOT A CASE WHERE 80G APPRO VAL HAS BEEN WITHDRAWN. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 08-07 -2011 SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED; 08 /07/2011 *MISHRA COPY FORWARDED TO :- 1. M/S. SHIV RATAN RATHI FOUNDATION, KOTA BY O RDER 2. THE LD. CIT, KOTA 3. THE LD. CIT(A) 4. THE LD.DR 5. THE GUARD FILE (ITA NO.1242/JP /10) A.R, ITAT, JAIPUR FIT FOR PUBLICATION JM AM 4 5 6