Iapl/522/2011 Of The Commissioner Of Income Tax Allahabad v. Lok Sewa Sansthan Samiti Sonebhadra

Court No. - 35Case :- INCOME TAX APPEAL No. - 522 of 2011Appellant :- The Commissioner Of Income Tax AllahabadRespondent :- Lok Sewa Sansthan Samiti SonebhadraCounsel for Appellant :- Gaurav Mahajan,S.S.C. I.T.Counsel for Respondent :- Rishi Raj Kapoor Hon'ble Bharati Sapru,J.Hon'ble Neeraj Tiwari,J. Heard Shri Gaurav Mahajan, learned counsel for the appellant and Shri R.R. Kapoor, learned counsel for the respondent. This appeal under Section 260-A of the Income Tax, 1961(hereinafter referred to as the 'Act') has been filed by thedepartment against the order of the Tribunal dated 08.03.2011raising following questions of law: "(1) Whether on the facts and in the circumstances of the case, the Tribunal is justified in lawin directing the CIT to grant approval u/s 80-G of the Act to the assessee by completelyignoring the fact that Registration u/s 12-A of the Act was denied by the CIT and the same is aprecondition for grant of approval u/s 80-G of the act besides the conditions laid down inClause (a) of the proviso to Section 80-G (5) were not fulfilled?" The facts of the case are that the assessee is a registered society which was engaged in charitable activities and appliedfor registration under Section 12-AA of the Act and also forrelief under Section 80-G(5) of the Income Tax Act. Twoappeals were filed. The application of the assessee under Section 12-AA of the Act was rejected in which appeal was filed which finallyculminated in an appeal before this Court and this Court inIncome Tax Appeal No.139 of 2011 passed a judgment on02.07.2013 taking a view that there was no adverse materialagainst the assessee to come to the conclusion that it was not acharitable institution or organisation and, therefore, it wasliable to be registered under Section 12-A of the Act. As of today the assessee stands registered as a charitable institution under Section 12-A of the Act. The natural corollaryis that this application under Section 80G(5) of the Act alsobecomes liable to be allowed. The question of law in the present appeal is, therefore, decidedin favour of the assessee and against the department. The appeal is accordingly dismissed. Order Date :- 20.2.2018 pks