Karnataka Gandhi Smaraka Nidhi (Regd), Bangalore V. DIT(Exemptions), Bangalore

ITA 570/BANG/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0662 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 05-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREETHI GARG
• Assessee Lawyers: S RAMASUBRAMANIAN
• Keywords: Charitable institution
• Section: 80G; 12A; 208; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.570/BANG/2009 ASSESSMENT YEAR : N.A. KARNATAKA GANDHI SMARAKA NIDHI (REGD.), GANDHI BHAVAN, KUMARA PARK EAST, BANGALORE 560001. : APPELLANT VS. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), BANGALORE. : RESPONDENT APPELLANT BY : SHRI S. RAMASUBRAMANIAN RESPONDENT BY : SMT. PREETHI GARG O R D E R PER A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER THIS APPEAL OF THE ASSESSEE A CHARITABLE INSTITUT ION IS DIRECTED AGAINST THE ORDER OF LD.DIT(E) FOR REJECTING ITS RE QUEST FOR RENEWAL OF RECOGNITION U/S 80G OF THE ACT. 2. THE ASSESSEE HAS RAISED EIGHT GROUNDS. GROUND NO.1 BEING GENERAL AND NOT SPECIFIC, IT DOESNT SURVIVE FOR AD JUDICATION AND, THEREFORE, DISMISSED AS SUCH. IN THE REMAINING GROUNDS, THE S UBSTANCE AND ESSENCE OF THE ASSESSEES GRIEVANCES ARE TWO-FOLD, NAMELY: ITA NO.570/B/09 PAGE 2 OF 9 (I) THE DIT(E) ERRED IN HOLDING THAT ACHIEVING THE OBJE CTS OF SPREADING THE IDEALS OF THE FATHER OF NATION BY SEL LING BOOKS ON HIM INVOLVES CARRYING ON AN ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS; - THE RECEIPT OF CHARGES FOR USE OF SEMINARS, MAINTEN ANCE EXPENSES ETC. WERE IN THE NATURE OF BUSINESS RECEIP TS; - THE ASSESSEE HAD NOT MAINTAINED PROPER AND REGULAR BOOKS OF ACCOUNT; (II) THE IMPUGNED ORDER NOT HAVING BEEN PASSED WITHIN SI X MONTHS AS REQUIRED UNDER RULE 11AA(6) FROM THE DATE OF RECEIP T OF APPLICATION FOR APPROVAL WAS DEEMED TO HAVE BEEN AP PROVED U/S 80G(5)(VI) OF THE ACT. 3. THE ASSESSEE REGISTERED U/S 12A OF THE ACT ON 19/7/1983 - FILED ITS APPLICATION IN FORM 10G ON 23.10.2008 SEEKING RENEW AL OF RECOGNITION U/S 80G OF THE ACT. 3.1. ON VERIFICATION OF ACCOUNTS AND ELIGIBILITY I N TERMS OF S.80G(5) (I) OF THE ACT, THE LD.DIT(E) FOUND THAT THE ASSESS EE WAS ENGAGED IN VARIOUS ACTIVITIES UNDER THE ADVANCEMENT OF GENERA L PUBLIC UTILITY LIMB OF THE DEFINITION OF CHARITABLE PURPOSES AND THE RECEI PTS OF WHICH INCLUDED OVERRIDING COMMISSION, SALE OF BOOKS, HALL MAINTENA NCE, OFFICE MAINTENANCE, TEXT BOOK ROYALTY ETC., AND THUS CONCL UDED THAT THE PROVISO TO S. 2(15) OF THE ACT IS ATTRACTED WHEREBY THE ASSESS EE WAS NOT ELIGIBLE IN TERMS OF S.80G(5)(I) AS THE RECEIPTS WHICH IN THE NATURE OF BUSINESS WAS HIT BY THE PROVISO OF S.2(15) THEREBY THE INCOME OF THE TRUST WAS NOT EXEMPT U/S 11 OF THE ACT. ITA NO.570/B/09 PAGE 3 OF 9 4. AGGRIEVED, THE ASSESSEE HAS COME UP WITH THE PRE SENT APPEAL. DURING THE COURSE OF HEARING, THE LD. AR CAME UP WI TH LENGTHY SUBMISSIONS, THE SUBSTANCES OF WHICH ARE SUMMARIZED AS UNDER: (I) THE PROVISO TO S.2 (15) OF THE ACT IS APPLICABLE ON LY TO THOSE CASES WHERE THE OBJECT OF GENERAL PUBLIC UTILITY ITSELF I NVOLVES CARRYING ON AN ACTIVITY IN THE NATURE OF TRADE, ETC., AND NO T CARRYING ON SUCH TRADE IN THE ADVANCEMENT OF OBJECT OF GENERAL PUBLI C UTILITY; - RELIANCE IS PLACED IN THE CASE OF ADDL.CIT V. SURA T ART SILK CLOTH MANUFACTURERS ASSOCIATION 121 ITR 1 (SC) (II) THE OBJECTS OF THE ASSESSEE [CLAUSE 6 OF MEMORANDUM OF ASSOCIATION P.73 OF PB] DOESNT REQUIRE CARRYING ON ANY ACTIVITY OF TRADE OR COMMERCE. THE GANDHIAN IDEALS CAN BE S PREAD BY CONDUCTING SEMINARS, WORKSHOPS, CLASSES AND LECTURE S. HENCE, THE SELLING OF BOOKS WAS AN INCIDENTAL ACTIVITY TO ADVA NCE ITS MAIN OBJECT WILL NOT DISENTITLE THE ASSESSEE FROM CLAIMI NG IT AS A CHARITABLE INSTITUTION WITHIN THE MEANING OF S.2 (1 5) OF THE ACT. THE PROVISO IS NOT APPLICABLE; - RELIANCE IS PLACED IN HIMACHAL PRADESH ENVIRONMENT PROTECTION AND POLLUTION CONTROL BOARD V. CIT ITA NO:74/CHD/2009 ITAT, CHANDIGARH B BENCH - THE OBJECT OF THE ASSESSEE OF SPREADING GANDHIAN ID EALS WAS NOT A MASK OR DEVICE TO HIDE THE TRUE PURPOSE OF TR ADING IN BOOKS. EVEN THE ACTIVITY OF SELLING BOOKS IS IN SU CH A LOW VOLUME THAT ONE CANNOT SAY THAT THERE WAS A HIDDEN AIM TO EARN PROFITS ON A COMMERCIAL SCALE; (III) THE MEANING OF THE WORD IT IN THE EXPRESSION THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY SHALL NOT BE A CHARITABLE PURPOSE, IF IT INVOLVES THE CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE. THE QUESTION IS WHETHER IT REFERS TO THE TRUST OR THE INSTITUTION WHEREBY THERE IS A TOTAL E MBARGO ON SUCH TRUST OR INSTITUTION TO CARRY ON ANY TRADE. IT C ANNOT REFER TO THE TRUST OR INSTITUTION, BUT CAN REFER EITHER TO ADVA NCEMENT OR OBJECT OF GENERAL PUBLIC UTILITY. WHEN IT IS U SED AFTER A FEW SPECIFIC ITEMS, REFERENCE IS ONLY TO THOSE ITEMS AN D NOT SOMETHING ELSE. ITA NO.570/B/09 PAGE 4 OF 9 - SINCE THE EXPRESSION TRUST OR INSTITUTION DOES NOT PRECEDE IT IN THE PROVISO, IT CANNOT REFER TO A TRUST O R INSTITUTION. THUS, THE ACTIVITY OF SELLING BOOKS ON GANDHIAN THO UGHT AND GANDHIJI DOES NOT FALL UNDER THE PROVISO; - COLLECTION OF MAINTENANCE CHARGES FROM OTHER CHARIT ABLE INSTITUTION DOES NOT HAVE CHARACTERISTICS OF ANY TR ADE, COMMERCE OR BUSINESS; (IV) WITHOUT PREJUDICE, IT WAS CONTENDED THAT AS PER THE AMENDED PROVISIONS OF S.80G OF THE ACT BY THE FINANCE ACT, 2009, (AS PER CLAUSE (VII) TO S.80G) AN INSTITUTION OR FUND WHICH HAS BEEN APPROVED UNDER CLAUSE (VI) OF S.80G FOR THE PREVIOU S YEAR 07-08 SHALL BE DEEMED TO HAVE BEEN ESTABLISHED FOR CHARIT ABLE PURPOSES FOR THE PREVIOUS YEAR 08-09, NOTWITHSTANDING ANYTHI NG CONTAINED IN THE PROVISO TO S.2(15). HENCE, THE ASSESSEE IS T O BE TREATED AS A CHARITABLE INSTITUTION FOR THE PURPOSE OF S.80G FOR THE AY 09-10; (V) THE ORDER NOT HAVING BEEN PASSED WITHIN SIX MONTHS AS REQUIRED UNDER RULE 11AA(6) FROM THE DATE OF APPLICATION MAD E FOR APPROVAL IS DEEMED TO HAVE BEEN APPROVED U/S 80G(5) (VI) OF THE ACT; - RELIANCE ARE PLACED ON THE CASE LAWS: (A) BHAGWAD SWARUP SHRI DEVRAHA BABA MEMORIAL SHRI HARI PARMARTH DHAM TRUST V. CIT (2008) 111 ITD 175 ITA T (SB); (B) KARNATAKA GOLF ASSOCIATION V. DIT (2004) 91 ITD 1 ITAT, BANGALORE; & (C) RAJ KUMAR JAIN V. ACIT 208 ITR (AT) 22 4.1. TO STRENGTHEN HIS ARGUMENTS, THE LD. AR HAD F URNISHED A PAPER BOOK CONTAINING 1 82 PAGES WHICH CONSIST OF, INTE R-ALIA, COPIES OF (I) FORM NO.10G WITH ANNEXURE, (II) DIT(E)S LETTER RENEWIN G RECOGNITION U/S 80G FOR THE PERIOD UP-TO 1/3/08, (III) CERTIFICATE OF REGIS TRATION U/S 12A, (IV) MEMORANDUM OF ASSOCIATION ETC., 4.2. ON HER PART, THE LD. D R HAD STRONGLY DEFENDE D THE STAND OF THE LD. DIT(E) IN REFUSING TO RENEW THE RECOGNITION FOR THE REASONS SET-OUT IN THE ITA NO.570/B/09 PAGE 5 OF 9 IMPUGNED ORDER AND PLEADED THAT THE ORDER OF THE DI T(E) BE SUSTAINED. DURING THE COURSE OF HEARING, THE LD. D R HAD FURNI SHED A COPY OF THE COMMUNICATION RECEIVED FROM THE DIT(E). 5. WE HAVE DULY CONSIDERED THE RIVAL SUBMISSIONS AN D ALSO PERUSED THE RELEVANT RECORDS, PAPER BOOK FURNISHED BY THE LD. A R AND THE DOCUMENT PRODUCED BY THE LD.D.R. 5.1. ON A PERUSAL OF THE IMPUGNED ORDER, WE FIND T HAT THE REASONING OF THE LD. DIT (E) WAS THAT THE TRUST WAS ENGAGED IN V ARIOUS ACTIVITIES UNDER THE ADVANCEMENT OF GENERAL PUBLIC UTILITY LIMB OF THE DEFINITION OF CHARITABLE PURPOSE. THE RECEIPTS INCLUDED OVERRIDING COMMISSI ON, SALE OF BOOKS, HALL MAINTENANCE, OFFICE MAINTENANCE, TEXT BOOK ROYALTY ETC, AND THUS, THE PROVISO TO S.2 (15) OF THE ACT WAS ATTRACTED IN THE CASE OF THE ASSESSEE. THE DIT(E) HAD REJECTED THE ASSESSEES REQUEST FOR THE RENEWAL OF RECOGNITION U/S 80G OF THE ACT ON THE SOLE GROUND T HAT THE RECEIPTS WERE IN THE NATURE OF BUSINESS WHICH FALLS WITHIN THE AMBIT OF S.2(15) OF THE ACT. 5.2. IT COULD BE SEEN FROM THE INCOME AND EXPENDIT URE STATEMENT(S), A LION SHARE OF EXPENSES INCURRED TOWARDS CONDUCTING PROGRAMMES ON GANDHIJI AND PROPAGATING HIS IDEALS THROUGH MEETING S AND INAUGURATION OF GANDHI STATUE ETC., WHICH CANNOT BE TERMED AS IN T HE NATURE OF TRADE, COMMERCE OR BUSINESS AS MADE OUT BY THE DIT(E). WHEN COLLECTIONS DERIVED FROM SALE OF BOOKS ON GANDHIJI, HALL MAINTE NANCE ETC., WITHOUT ANY PROFIT-MOTIVE, WE ARE OF THE CONSIDERED VIEW, IT CA NNOT BE CALLED BY ANY STRETCH OF IMAGINATION, AS IN THE NATURE OF TRADE. EVEN THE KARNATAKA ITA NO.570/B/09 PAGE 6 OF 9 GOVERNMENT HAD SANCTIONED GRANT OF RS.10 LAKHS TO P ROPAGATING THE IDEALS OF GANDHIJI TO RURAL MASSES. 5.3. ON A PERUSAL OF THE ACCOUNTS FURNISHED BY THE ASSESSEE TRUST, WE COULD NOT FIND THAT IT HAD INDULGED IN THE ACTIVITI ES OF A TRADE WITH A SOLE PURPOSE OF MAKING A PROFIT. 5.4. THE MAIN OBJECTS AS PER THE MEMORANDUM OF ASS OCIATION ARE THAT - (I) CONDUCT AND PROMOTE IN THE REGION AS DEFINED IN THE CLAUSE 4 ABOVE, MANIFOLD CONSTRUCTIVE ACTIVITIES WITH WHICH MAHATMA GANDHI WAS ASSOCIATED DURING HIS LIFE TIME AND ALL SUCH ACTIVITIES REQUIRED IN FURTHERANCE OF THE IDEALS OF TRUTH AND NON-VIOLENCE, INCLUDING SUCH ACTIVITIES AS ARE CARRIED ON FROM TI ME TO TIME THE GANDHI SMARAKA NIDHI, NEW DELHI AND AS ENUMERATED B ELOW: - NATIONAL UNITY AND INTERNATIONAL PEACE AND AMITY; - COMMUNAL AND SOCIAL HARMONY AND BROTHERHOOD - REMOVAL OF UN-TOUCHABILITY AND SUCH OTHER SOCIAL DI SABILITIES - PROHIBITION OF ALCOHOLIC AND OTHER NARCOTIC DRUGS - DIFFUSION OF KNOWLEDGE REGARDING THE KHADI AND OTHE R VILLAGE INDUSTRIES AND HANDICRAFTS; - NAI TALIM OR NEW EDUCATION (PRE-BASIC AND POST-BASI C); - ADULT EDUCATION, EDUCATION IN HEALTH, HYGIENE AND S ANITATION, ESPECIALLY IN RURAL AREAS; - PROMOTION OF NATIONAL LANGUAGE HINDI AND ALL OTHER LANGUAGES IN INDIA, - PROGRESS OF WOMEN AND CHILDREN AND WELFARE OF STUDE NTS; - SOCIAL AND ECONOMIC EQUALITY; - PROMOTION AND PROGRESS OF AGRICULTURE AND ANIMAL HU SBANDRY; - PROMOTION OF ALL SIDED WELFARE OF THE KISANS, LABOU R CLASSES, ADIVASIS AND OTHER IN THE SAME OR SIMILAR CATEGORY; - ERADICATION OF LEPROSY AND NATUROPATHY. 5.5. WITH REGARD TO THE LD. DIT(E)S ASSERTION THAT THE RECEIPTS ON SALE OF BOOKS ETC., WERE IN THE NATURE OF BUSINESS, WE ARE DRAWING STRENGTH FROM THE FINDING OF THE HONBLE ITAT, CHANDIGARH B BENCH IN ITA NO.74/CHD/2009 DATED: 28/8/2009 IN THE CASE OF HIMA CHAL PRADESH ITA NO.570/B/09 PAGE 7 OF 9 ENVIRONMENT PROTECTION AND POLLUTION CONTROL BOARD V. CIT. AFTER ANALYZING THE ISSUE IN GREAT DETAIL, THE HONBLE TR IBUNAL HAS OBSERVED THUS 13. IT IS ALSO IMPORTANT TO BEAR IN MIND THAT THE INSERTION OF PROVISO TO SECTION 2(15) DOES NOT MEAN THAT IN CASE AN ASSESSE E IS TO RECEIVES ANY PAYMENT FOR ANYTHING DONE FOR TRADE, COMMERCE OR BU SINESS, THE ASSESSEE WILL BE HIT BY THE SAID PROVISO. IT MAY BE RECALLE D THAT ELABORATING THE SCOPE OF THIS AMENDMENT, CENTRAL BOARD OF DIRECT TA XES, VIDE CIRCULAR NO.11 DATED 19 TH DECEMBER, 2008 (221 CTR STATUTES 1), HAS OBSERVED AS FOLLOWS: 3. THE NEWLY AMENDED SECTION 2(15) WILL APPLY ONLY TO THE ENTITIES WHOSE PURPOSE IS ADVANCEMENT OF ANY OTHER OBJECT O F GENERAL PUBLIC UTILITY I.E., THE FOURTH LIMB OF DEFINITION OF CH ARITABLE PURPOSE CONTAINED IN SECTION 2(15). HENCE, SUCH ENTITIES W ILL NOT BE ELIGIBLE FOR EXEMPTION UNDER SECTION 11 OR UNDER SECTION 10( 23C) OF THE ACT, IF THEY CARRY ON COMMERCIAL ACTIVITIES. WHETHER SUCH AN ENTITY IS CARRYING ON AN ACTIVITY IN THE NATURE OF TRADE, COM MERCE OR BUSINESS IS A QUESTION OF FACT WHICH WILL BE DECIDED BASED O N THE NATURE, SCOPE, EXTENT AND FREQUENCY OF ACTIVITY. 3.2. IN THE FINAL ANALYSIS, WHETHER THE ASSESSEE HA S FOR ITS OBJECT THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC U TILITY IS A QUESTION OF FACT. IF SUCH ASSESSEE IS ENGAGED IN A NY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS OR RENDERS AN Y SERVICE IN CONNECTION TO TRADE, COMMERCE OR BUSINESS, IT WOULD NOT BE ENTITLED TO CLAIM THAT ITS OBJECT IS FOR CHARITABLE PURPOSES. IN SUCH A CASE, THE OBJECT OF GENERAL PUBLIC UTILITY WILL ONLY BE A M ASK OR A DEVICE TO HIDE THE TRUE PURPOSE WHICH IS TRADE, COMMERCE, OR BUSINESS OR RENDERING OF ANY SERVICE IN RELATION TO TRADE, COMM ERCE OR BUSINESS. EACH CASE WOULD, THEREFORE, HAVE TO BE DECIDED ON I S OWN FACTS, AND GENERALIZATIONS ARE NOT POSSIBLE. AN ASSESSEE WHO CLAIMS THAT THEIR OBJECT IS CHARITABLE PURPOSE WITHIN THE MEANING O F SECTION 2(15) WOULD BE WELL ADVISED TO ESCHEW ANY ACTIVITY WHICH IS IN THE NATURE OF TRADE, COMMERCE OR BUSINESS OR RENDERING OF ANY SER VICE IN RELATION TO ANY TRADE, COMMERCE OR BUSINESS. 14. AS THE ABOVE CBDT CIRCULAR, WHICH IS BINDING O N THE COMMISSIONER UNDER SECTION 119(1)(A) OF THE ACT, APTLY PUTS IT, WHETHER THE ASSESSEE HAS, AS ITS OBJECT, ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY IS ESSENTIALLY A QUESTION OF TO BE DECIDED ON THE FACTS OF THE ASSESSEES OWN CASE AND WHERE OBJECT OF GENERAL PUB LIC ACTIVITY IS ONLY A ITA NO.570/B/09 PAGE 8 OF 9 MASK, OR DEVICE TO HIDE THE TRUE PURPOSE OF TRADE, BUSINESS OR COMMERCE, OR RENDERING OF ANY SERVICE IN RELATION THERETO, TH E ASSESSEE CANNOT BE SAID TO BE ENGAGED IN A CHARITABLE ACTIVITY WITHIN THE MEANINGS OF SECTION 2(15) OF THE ACT. AS A COROLLARY TO THIS APPROACH ADOPTED BY TAX ADMINISTRATION, IN OUR CONSIDERED VIEW, IT CANNOT B E OPEN TO THE LEARNED COMMISSIONER TO CONTEND THAT WHERE AN OBJECT OF GEN ERAL PUBLIC UTILITY IS NOT MERELY A MASK TO HIDE TRUE PURPOSE OR RENDERING ANY SERVICE IN RELATION THERETO, AND WHERE SUCH SERVICES ARE BEING RENDERED AS PURELY INCIDENTAL TO OR A SUBSERVIENT TO THE MAIN OBJECTIV E OF GENERAL PUBLIC UTILITY WILL ALSO BE HIT BY THE PROVISO TO SECTION 2(15). 5.6. IN OVER ALL CONSIDERATION OF THE FACTS AND C IRCUMSTANCES OF THE ISSUE BEFORE US AND ALSO RESPECTFULLY FOLLOWING THE FINDI NG OF THE HONBLE TRIBUNAL REFERRED SUPRA, WE ARE OF THE UNANIMOUS VIEW THAT T HE LD. DIT(E) WAS NOT JUSTIFIED IN REJECTING THE ASSESSEES APPLICATION F OR RENEWAL OF RECOGNITION U/S 80G OF THE ACT. IT IS ORDERED ACCORDINGLY. 6. THE OTHER GROUND OF THE ASSESSEE IS THAT THE ORDER NOT HAVING BEEN PASSED WITH IN SIX MONTHS AS REQUIRED UNDER RULE 11 AA(6) FROM THE DATE OF APPLICATION MADE FOR APPROVAL WAS DEEMED TO HAVE BE EN APPROVED U/S 80G(5)(VI) OF THE ACT. 6.1. THE LD. D.R. HAD PRODUCED, DURING THE COURSE H EARING, A LETTER RECEIVED FROM THE DIT(E) WHEREIN THE LD. DIT(E) HAD COMMENTED UPON THAT THE APPLICANT FILED APPLICATION FOR RENEWAL ON 23/ 10/2008. THE TIME LIMIT AS PER RULE 11AA (6) IS SIX MONTHS FROM THE DATE OF APPLICATION. WHILE PROCESSING THE APPLICATION TO V ERIFY THE ELIGIBILITY OF THE APPLICANT U/S 80G (5), SHOW CAUS E (NOTICE) WAS ISSUED ON 08/4/2009. ON 13/4/2009, THE APPLICANT F ILED THE LETTER REQUESTING FOR TWO WEEKS TIME TO FURNISH THE REQUI RED DETAILS. THUS, THE TIME LIMIT FOR PASSING THE ORDER U/S. 80G (5)(VI) GOT EXTENDED UNDER SUB-RULE 3 OF RULE 11AA TO 7.5.2009. NO REPLY WAS RECEIVED EVEN AFTER LAPSE OF THE EXTEN DED TIME LIMIT. AN ORDER WAS PASSED ON 5/5/2009 WELL WITHIN THE TIM E ALLOWED UNDER RULE 11AA (6). ITA NO.570/B/09 PAGE 9 OF 9 6.2. HOWEVER, WE FIND A TWO PAGE COMMUNICATION A DDRESSED BY THE ASSESSEE TO THE REVENUE [ON PAGE 71 OF PAPER BOOK] EXPLAINING CERTAIN DETAILS (THE DATE OF LETTER IS NOT LEGIBLE). BUT, NO ACKNOWLEDGEMENT WAS FORTHCOMING FOR HAVING FILED THE SAID LETTER WITH T HE DEPARTMENT. 6.3. WE HAVE SINCE DIRECTED THE LD.DIT(E) TO RENEW RECOGNITION U/S 80G OF THE ACT IN FAVOUR OF THE ASSESSEE, THIS GROUND H AS BECOME OBSOLETE AND THUS, WE HAVE DECIDED NOT TO GO INTO THE MERIT OR O THERWISE OF THE ISSUE. 7. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON THIS 13 TH DAY OF NOVEMBER, 2009. SD/- SD/- (GEORGE GEORGE K. ) (A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 13 TH NOVEMBER, 2009. DS/- COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE (1+1) BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.