Commissioner Of Income Tax, Alwar v. Seth Makhan Lal Mahawar Charitable Trust

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH ATJAIPUR D.B. Income Tax Appeal No. 147/ 2011 Commissioner of Income Tax, Alwar. ----Appellant Versus Seth Makhan Lal Mahawar Charitable Trust, 54, Raghu Marg, Alwar. ----Respondent _____________________________________________________ For Appellant(s) : Mr. Sameer Jain with Ms. Mahi Yadav.For Respondent(s) : Mr. Gunjan Pathak. _____________________________________________________ HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE DR. JUSTICE VIRENDRA KUMAR MATHUR Order 22/05/2017 1.By way of this appeal, the appellant has challenged thejudgment and order of the Tribunal whereby the Tribunal hasallowed the appeal of the assessee. 2.While admitting the appeal, this Court framed the followingsubstantial question of law: “Whether udder the facts and circumstances of thecase, and in law the Tribunal was justified in holdingthat assesse was entitled to exemption u/s 80G (5)contrary to Rule 11AA, Sections 11 and 12 of theAct?” 3Heard learned counsel for the parties. 3.1Counsel for the appellant contended that the Tribunal hasseriously committed an error in reversing the view taken by theCIT(A) in as much as registration of the trust under Section 12-Awas wrongly refused. 3.2In our considered opinion, the very purpose of the trust isnot to look after the activities personally. 3.3In that way of the matter the only thing which is required tobe said is whether the donation is used for the purpose for whichthe trust is created. 3.4Thus the observations made by the Tribunal which reads as under:- “The assessments for earlier years 2005-06 and06-07 have been competed under section 143(3).No irregularity or deficiency was noted by AO andhe has mentioned in his order that all the details inrespect of interest rent, dividend, donations etc.and books of account and supporting evidencehave been maintained and produced which wereexamined on test check basis and found correct.Therefore, we feel that Ld. CIT was not justified inrefusing the renewal under section 80G. We furthernoted that in similar circumstances in case of M/s.Ratnawali Charitable Trust, the Tribunal hasdirected to allow the renewal of exemption undersection 80G. Therefore, in view of the above factsand circumstances and in view of the decision ofthe Tribunal, we direct ld. CIT to allow applicationof renewal of exemption under section 80G(5) ofthe Act.”06-07 have been competed under section 143(3).No irregularity or deficiency was noted by AO andhe has mentioned in his order that all the details inrespect of interest rent, dividend, donations etc.and books of account and supporting evidencehave been maintained and produced which wereexamined on test check basis and found correct.Therefore, we feel that Ld. CIT was not justified inrefusing the renewal under section 80G. We furthernoted that in similar circumstances in case of M/s.Ratnawali Charitable Trust, the Tribunal hasdirected to allow the renewal of exemption undersection 80G. Therefore, in view of the above factsand circumstances and in view of the decision ofthe Tribunal, we direct ld. CIT to allow applicationof renewal of exemption under section 80G(5) ofthe Act.” 4.In view of the above the issue is answered in favour of assessee against the department. The appeal stands dismissed. ( VIRENDRA KUMAR MATHUR),J. (K.S. JHAVERI),J. B.M.Gandhi