Bhakta Patidar Kelvani Mandal, Navsari V. The CIT, Valsad

ITA 1980/AHD/2009

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9379 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 17-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M C
• Assessee Lawyers: M K PATEL
• Keywords: Charitable institution; Set aside
• Section: 80G; 12A; 11

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH C BEFORE SHRI H.L. KARWA, JUDICIAL MEMBER AND SHRI A.N. PAHUJA, ACCOUNTANT MEMBER ITA NO. 1980/AHD/2009 (ASSESSMENT YEAR 2008-09) BHAKTA PATIDAR KELVANI MANDAL, MANEKLAL ROAD, NAVSARI-396 445. VERSUS THE COMMISSIONER OF INCOME TAX, VALSAD, SURYAPRAKASH CHAMBERS, DHARAMPUR ROAD, VALSAD-GUJARAT (APPELLANT) (RESPONDENT) PAN:AABTS 3428 D FOR THE APPELLANT: SHRI M K PATEL FOR THE RESPONDENT SHRI M.C. PANDIT, SR. DR ORDER PER H.L.KARWA, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER O F INCOME TAX, VALSAD DATED 06-05-2009, REFUSING TO ISSUE CERTIFICATE UND ER SECTION 80G OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2. THE ASSESSEE IS A TRUST AND HAD FILED AN APPLICA TION UNDER SECTION 80G OF THE ACT ON 05-12-2008. THE CIT REFUSED TO ISSUE CERTIFICATE UNDER SECTION 80G OF THE ACT OBSERVING AS UNDER: 4. IN RESPONSE TO THIS LETTER, SHRI PARESH BHANDAR I, A.R. OF THE ASSESSEE ATTENDED AND FILED A WRITTEN SUBMISSION AS PER THE DETAILS CALLED FOR. ON VERIFICATION OF THE SUBMISS ION AND THE DETAILS FILED ALONGWITH THE APPLICATION IT IS SEEN THAT THE ASSESSEE HAS FAILED TO COMPLY WITH THE PROVISIONS OF SECTION 11 OF THE I.T. ACT, 1961 BY NOT EXPENDING 85% OF ITS INCOME ON THE OBJECTS OF THE TRUST. THEREFORE, THE APPLICATION FILED FOR CE RTIFICATE U/S 80G IS HEREBY REJECTED. 2 ITA NO. 1980/AHD/2009 (ASSESSMENT YEAR 2008-09) 3. WE HAVE HEARD THE RIVAL SUBMISSIONS. WE FIND TH AT THE ASSESSEE HAS BEEN GRANTED REGISTRATION UNDER SECTION 12A OF THE ACT. THE CIT REJECTED THE APPLICATION FOR THE CERTIFICATE UNDER SECTION 80G O F THE ACT ON THE GROUND THAT THE ASSESSEE TRUST HAS VIOLATED THE PROVISIONS OF S ECTION 11 OF THE ACT BY NOT SPENDING 85% OF ITS INCOME ON THE OBJECTS OF THE TR UST. IN OUR CONSIDERED VIEW, THE CIT WAS NOT JUSTIFIED IN REFUSING TO GIVE THE CERTIFICATE ON HE ABOVE GROUND AS HELD BY THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF N.N. DESAI CHARITABLE TRUST VS. CIT. [ (2000) 246 ITR 452]. T HE APPLICATION OF INCOME IS A MATTER TO BE EXAMINED BY THE ASSESSING OFFICER AT THE ASSESSMENT STAGE. THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF H ON'BLE JURISDICTIONAL HIGH COURT (SUPRA), WE SET ASIDE THE ORDER OF CIT AND DI RECT HIM TO ISSUE THE CERTIFICATE UNDER SECTION 80G OF THE ACT AS PRAYED FOR BY THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. THE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 21-08 -2009. [ SD/- SD/- ( A.N. PAHUJA) (H.L. KARWA) ACCOUNTANT MEMBER JUD ICIAL MEMBER AHMEDABAD; DATED: 21/08/2009 ANKIT* COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) CONCERNED 4. THE CIT, 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, ASSTT. REGISTRAR/ DEPUTY REGISTRAR ITAT, AHMEDABAD BENCHES, AHMEDABAD.