Balchandra Educational Trust, Lucknow V. Commissioner of Income Tax (Exemption), Lucknow

ITA 668/LKW/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1506 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 09-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

I.T.A. NO.668/LKW/2017 ASSESSMENT YEAR:2017-18 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER I.T.A. NO.668/LKW/2017 ASSESSMENT YEAR:2017-18 BALCHANDRA EDUCATIONAL TRUST, 32A, CHANDRA LOK, ALIGANJ, LUCKNOW. PAN:AABTB 4504 D VS. CIT (EXEMPTIONS), LUCKNOW. (APPELLANT) (RESPONDENT) O R D E R PER T. S. KAPOOR, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LEARNED CIT (EXEMPTIONS), LUCKNOW DATED 11/08/2017. 2. AT THE OUTSET, LEARNED A. R. SUBMITTED THAT ASSE SSEE WAS HAVING REGISTRATION U/S 12AA OF THE ACT, HOWEVER, ITS APPL ICATION FOR GRANT OF APPROVAL U/S 80G HAS BEEN REJECTED BY LEARNED CIT ( EXEMPTIONS) WHICH IS NOT JUSTIFIED AS THE ASSESSEE WAS FULFILLING ALL TH E CONDITIONS APPLICABLE U/S 80G(5)(VI) OF THE ACT. LEARNED A. R. SUBMITTED THA T LEARNED CIT (EXEMPTIONS) HAS WRONGLY REJECTED THE APPLICATION O F THE ASSESSEE RELYING ON THE INCOME & EXPENDITURE ACCOUNT OF THE ASSESSEE WHEREAS THE CONDITIONS MENTIONED U/S 80G(5)(VI) OF THE ACT WER E NOT VIOLATED. LEARNED A. R. SUBMITTED THAT CASE LAWS RELIED UPON BY LEARN ED CIT (EXEMPTIONS) IS APPELLANT BY SHRI SHYAM LAL, F. C. A. RESPONDENT BY S HRI C. K. SINGH, D.R. DATE OF HEARING 07/03/2019 DATE OF PRONOUNCEMENT 15 / 03 /201 9 I.T.A. NO.668/LKW/2017 ASSESSMENT YEAR:2017-18 3 SUCH BUSINESS; AND(C) THE INSTITUTION OR FUND ISSUE S TO A PERSON MAKING THE DONATION A CERTIFICATE TO THE EFF ECT THAT IT MAINTAINS SEPARATE BOOKS OF ACCOUNT IN RESPECT OF S UCH BUSINESS AND THAT THE DONATIONS RECEIVED BY IT WILL NOT BE USED, DIRECTLY OR INDIRECTLY, FOR THE PURPOSES OF S UCH BUSINESS; (II) THE INSTRUMENT UNDER WHICH THE INSTITUTION OR FUND IS CONSTITUTED DOES NOT, OR THE RULES GOVERNING THE IN STITUTION OR FUND DO NOT, CONTAIN ANY PROVISION FOR THE TRANS FER OR APPLICATION AT ANY TIME OF THE WHOLE OR ANY PART OF THE INCOME OR ASSETS OF THE INSTITUTION OR FUND FOR ANY PURPOSE OTHER THAN A CHARITABLE PURPOSE; (III) THE INSTITUTION OR FUND IS NOT EXPRESSED TO B E FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CA STE; (IV) THE INSTITUTION OR FUND MAINTAINS REGULAR ACCO UNTS OF ITS RECEIPTS AND EXPENDITURE; (V) THE INSTITUTION OR FUND IS EITHER CONSTITUTED A S A PUBLIC CHARITABLE TRUST OR IS REGISTERED UNDER THE SOCIETI ES REGISTRATION ACT, 1860 (21 OF 1860), OR UNDER ANY L AW CORRESPONDING TO THAT ACT IN FORCE IN ANY PART OF I NDIA OR UNDER SECTION 25 OF THE COMPANIES ACT, 1956 (1 OF 1 956), OR IS A UNIVERSITY ESTABLISHED BY LAW, OR IS ANY OT HER EDUCATIONAL INSTITUTION RECOGNISED BY THE GOVERNMEN T OR BY A UNIVERSITY ESTABLISHED BY LAW, OR AFFILIATED TO A NY UNIVERSITY ESTABLISHED BY LAW, OR IS AN INSTITUTION FINANCED WHOLLY OR IN PART BY THE GOVERNMENT OR A LOCAL AUTH ORITY; 3.1 WE FIND THAT LEARNED CIT (EXEMPTIONS) HAS NOT M ADE ANY OBSERVATION REGARDING VIOLATION OF ANY CONDITION LAID DOWN UNDE R CLAUSE (I) TO (V) OF SECTION 80G(5) OF THE ACT. THEREFORE, WE DEEM IT AP PROPRIATE TO REMIT THE ISSUE BACK TO THE FILE OF LEARNED CIT (EXEMPTIONS) WHO SHOULD CONSIDER THE APPLICATION OF THE ASSESSEE U/S 80G AFRESH KEEPING IN VIEW THE DECISION OF VARIOUS BENCHES OF THE TRIBUNAL AND ALSO KEEPING IN VIEW THE SPIRIT OF CONDITIONS LAID DOWN IN CLAUSES (I) TO (V) OF SECTI ON 80G OF THE ACT. NEEDLESS