The Commissioner Of Income Tax -Ii Madurai v. M/S.ayira Vysya Mahasabai Matriculation Higher Secondary School Committee, Balasubramaniaswamy South Car Street, Velipattinam, Ramanathapuram – 623 535

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI The Commissioner of Income Tax -IIMadurai. ... AppellantVs. M/s.Ayira Vysya Mahasabai MatriculationHigher Secondary School Committee,Balasubramaniaswamy South Car Street,Velipattinam, Ramanathapuram – 623 535 ... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, "D" Bench, dated 23.12.2010 in I.T.A.No.304/Mds/2010against the order of the Commissioner of Income Tax-II, Maduraidated 19.01.2010 in C.No.102/181/CIT-II/2003-04. For Appellant : Mr.J.Narayanasamy, Senior Standing CounselFor Respondent : Mr.R.SivaramanJUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) Challenging the order passed in I.T.A.No.304/Mds/2010 onthe file of the Income Tax Appellate Tribunal, Madras “D” Bench,the Revenue has filed the above appeal. 2.The assessee – Trust has filed its application for grantof renewal of exemption under Section 80G of the Income Tax Acton 21.08.2009. The registration under Section 12A(a) of theIncome Tax Act has been granted to the Trust vide order dated24.09.2004 for the assessment year 2005-06 onwards and theearlier exemption under Section 80G(5) of the Act was granted tothe Trust vide order dated 26.02.2007 from 01.04.2005 to31.03.2009. The Trust was asked to file (a) extract ofcharitable activities carried out by the Trust (b) expenditureon charitable activities for last three financial years 2006-07 https://hcservices.ecourts.gov.in/hcservices/ to 2008-09 (c) details of donation received and receipts and (d)bill/vouchers for expenses. The Commissioner of Income Taxrejected the application for renewal under Section 80G(5)(vi) ofthe Income Tax Act and as against the said order, the assesseepreferred an appeal before the Income Tax Appellate Tribunal andthe Tribunal in its order held that denial of approval seems tobe that the Board passed a resolution on 22.07.2006 and signedby the Secretary of the School wherein it has been stated that“Resolved that children of economically background family andsons and daughters of staff of our School shall be givenconcession of fees of tuition and special fees”. The Tribunalfurther held that the above resolution is not a valid reason torefuse renewal of approval under Section 80G of the Act anddirected to grant approval to the assessee – Trust and allowedthe assessee's appeal. As against the order passed by theTribunal, the Revenue has filed the above appeal. 3.The above appeal was admitted on the followingsubstantial question of law: “Whether on the facts and in the circumstances ofthe case, the Income Tax Appellate Tribunal was rightin directing the Commissioner of Income Tax to grantapproval of Section 80G of the Income Tax Act, when theprimary statutory requirement under Section 80G(5)(i)has not been complied with by the Trust?” 4.Mr.J.Narayanasamy, learned Senior Standing Counselappearing for the appellant contended that the order passed bythe Tribunal is erroneous for the reason that the Commissionerof Income Tax had taken into consideration the Resolution passedby the Trust on 22.07.2006 and ultimately, came to theconclusion that the assessee is not entitled for renewal ofapproval under Section 80G of the Act. 3.The above appeal was admitted on the followingsubstantial question of law: “Whether on the facts and in the circumstances ofthe case, the Income Tax Appellate Tribunal was rightin directing the Commissioner of Income Tax to grantapproval of Section 80G of the Income Tax Act, when theprimary statutory requirement under Section 80G(5)(i)has not been complied with by the Trust?” 4.Mr.J.Narayanasamy, learned Senior Standing Counselappearing for the appellant contended that the order passed bythe Tribunal is erroneous for the reason that the Commissionerof Income Tax had taken into consideration the Resolution passedby the Trust on 22.07.2006 and ultimately, came to theconclusion that the assessee is not entitled for renewal ofapproval under Section 80G of the Act. 5.On a reading of the order passed by the Commissioner ofIncome Tax, it could be seen that the reasoning given by theCommissioner of Income Tax cannot stand for the reason that theBoard Resolution passed on 22.07.2006 stating that the childrenof the economically backward family and sons and daughters ofstaff of the School shall be given concession of fees of tuitionand special fees, shall not stand in the way of granting renewalof approval under Section 80G of the Act. The said Resolutioncannot be put against the assessee for the grant of approvalunder Section 80G of the Act. We are of the considered view thatthe reasoning given by the Tribunal for setting aside the orderpassed by the Commissioner of Income Tax is just and proper. Wedo not find any ground much less any substantial question of law to interfere with the order passed by the Tribunal. The appealis liable to be dismissed. Accordingly, the Tax Case Appeal isdismissed. No costs. Sd/- Asst.Registrar (CS VI) /true copy/Sub Asst. RegistrarvaTo1.The Income Tax Appellate Tribunal, Chennai, "D" Bench2.The Commissioner of Income Tax-II, MaduraiT.C.A.No.444 of 2011gml(co)aa19/03/2021