Rehabilitation Society of the Visually Impaired, Lucknow V. Commissioner of Income Tax-I, Lucknow

ITA 302/LKW/2014

• Counselvise Citation: 30223714 RSA 2014
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-07-2014
• Assessment Year: misc
• Appeal Filed On: 21-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ALOK MITRA
• Keywords: Charitable institution
• Section: 80G

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.302/LKW/2014 ASSESSMENT YEAR:N.A. REHABILITATION SOCIETY OF THE VISUALLY IMPAIRED, A - 303, GOPALA APARTMENT, NARHI, LUCKNOW. PAN:AAATR9742E VS. C.I.T. - 1, LUCKNOW. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI ALOK MITRA, D. R. RESPONDENT BY SHRI RAKESH GARG, ADVOCATE DATE OF HEARING 24/07/2014 DATE OF PRONOUNCEMENT 07 /08/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT - I, LUCKNOW DATED 21/02/2014 U/S 80G(5)(VI) OF THE INCOME TAX ACT. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1. BECAUSE THE APPLICATION FOR GRANT OF APPROVAL U/S.80G MOVED BY THE APPELLANT IN THE PRESCRIBED FORM NO. 10G BEING STRICTLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 80G OF THE INCOME TAX ACT 1961 READ WITH RULES 11AA OF THE INCOME TAX RULES 1962 AND THE RE BEING NO DISCREPANCY OR INFIRMITY FOUND IN THE SAME, THE CIT WAS NOT JUSTIFIED IN GRANTING PARTIAL APPROVAL ONLY FOR SPECIFIC PURPOSE OF OBTAINING GRANT FROM, UNION BANK OF INDIA, APPROVAL SHOULD OUGHT TO HAVE BEEN GRANTED IN FULL AND COMPLETE. 2. BECA USE THE CIT HAS ERRED ON FACTS AND IN LAW IN RESTRICTING THE APPROVAL GRANTED U/S. 80G OF THE ACT 1961 FOR SPECIFIC 2 PURPOSE ONLY, WHICH ACTION OF THE CIT IS BAD IN LAW AND THE ORDER PASSED BE DIRECTED TO BE MODIFIED. 3. BECAUSE THERE BEING NO PROVISION IN THE INCOME TAX ACT FOR GRANTING PARTIAL, RESTRICTIVE OR CONDITIONAL APPROVAL FOR SPECIFIC PURPOSES U/S.80G OF THE ACT, THE ORDER PASSED BY THE CIT BEING ERRONEOUS AND MISCONCEIVED BE AMENDED AND COMPLETE/FULL APPROVAL BE GRANTED. 4. BECAUSE ON A PROPER I NTERPRETATION OF THE PROVISIONS OF SECTION 80G OF THE ACT 1961, ONCE WHEN ALL THE CONDITIONS AS LAID DOWN THEREIN BEING FULFILLED, CIT IS LEFT WITH NO ALTERNATIVE EXCEPT TO GRANT COMPLETE APPROVAL WITHOUT IMPOSING ANY RESTRICTIONS, ANY ORDER CONTRARY TO TH E SAME WOULD BE BAD IN LAW AND AGAINST THE SPIRIT OF THE STATUTE. 3. IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT THERE IS NO PROVISION IN THE ACT FOR ALLOWING APPROVAL U/S 80G(5) FOR A PARTICULAR RECEIPT O R ACTIVITY AND THEREFORE, THE ORDER OF CIT SHOULD BE MODIFIED AND THE APPROVAL ALLOWED BY HIM IN RESPECT OF ONE ACTIVITY SHOULD BE MODIFIED FOR ALL SUCH RECEIPTS. 4. LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDER OF LEARNED CIT. 5. WE HAVE CONSIDERED THE RIVAL SUBMIS SIONS. WE FIND THAT AS PER THE PROVISIONS OF SECTION 80G( 5 ), APPROVAL IS TO BE ALLOWED U/S 80G(5)(VI) TO THE DONATION MADE AFTER 31/03/92 IF THE INSTITUTION OR FIRM IS BEING APPROVED BY THE CIT IN ACCORDANCE WITH THE RULES MADE IN THIS BEHALF. WE FIND TH AT THERE IS NO SUCH PROVISION THAT THE APPROVAL U/S 80G(5)(VI) SHOULD BE ALLOWED IN RESPECT OF ONE PARTICULAR DONATION. SINCE CIT HAS GRANTED APPROVAL TO THE ASSESSEE IN RESPECT OF GRANT FROM UNION BANK OF INDIA FOR THE PURPOSE OF BRAILLE PRINTING MACHINE , IT HAS TO BE ACCEPTED THAT EVEN AS PER THE CIT , THE ASSESSEE IS SATISFYING ALL THE CONDITIONS. HENCE, WE MODIFY THE ORDER OF CIT AND HOLD THAT SUCH APPROVAL SHOULD BE READ AS APPROVAL IN RESPECT OF ALL DONATIONS FOR CHARITABLE PURPOSES WITH EFFECT FROM 01/04/2013 AND NOT FOR 3 ONLY DONATION FOR THE SPECIFIC PURPOSE NOTED BY CIT IN PARA 2 OF HIS ORDER. THE ORDER OF CIT STANDS MODIFIED TO THIS EXTENT . 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 07 /08/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR