2013 (12) TMI 468

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....ption under section 80G of the Act was granted to the assessee on 31.1.2006 for the period starting from 1.4.2005 to 31.3.2008. The assessee had applied for renewal of exemption under section 80G on 14.2.2012. The Commissioner of Income Tax sought report from the lower authority to consider the application of the assessee for grant of relief under section 80G. The CIT., Trichy after perusing the statement of accounts annexed along with Form 10G, rejected the application for grant of renewal of exemption under section 80G. Aggrieved against the order of the CIT-I, the assessee has come in appeal before the Tribunal. 3. Shri S.Sridhar appearing on behalf of the assessee submitted that the CIT has travelled beyond his jurisdiction under ....

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.... which is factually incorrect. 4. The counsel for the assessee made an alternate prayer that apart from the merits of the case, the CIT has not afforded sufficient opportunity to the assessee to explain the income and expenditure account placed before him. He contended that a perusal of records would show that only a single day was granted to the assessee to put forth his case and explain the books of account which is not sufficient. He submitted that fair opportunity has not been granted to the assessee to put forth his case. 5. On the other hand, Shri Shaji P.Jacob appearing on behalf of the Revenue submitted that the order of the CIT is a well-reasoned and detailed order. The CIT has specifically asked about the charitable activity....

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..... This benefit is being mis-utilized by the undeserving people. He strongly supported the order of the CIT. 7. We have heard the submissions made by both the parties and have gone through the order of the CIT and judgements/orders referred to by both the sides. A perusal of the order of the CIT-I shows that a report of the lower authority has been obtained before passing of the said order. The relevant extract of the order of the CIT is reproduced herein below:- "........ 2.1 Perusal of the statement of accounts filed along with the application in Form No.10G reveals the following: The trust runs Working Women's Hostel, Morning Star ITI, M.R.School, Home purely commercial basis. It is seen from the Income and Expenditure statement for....

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....ce, the activities actually carried out by this trust is only generating surplus out of running a school, hostel etc. for being utilized towards charity which has not been done at all in any of the two financial years. This inference is evident from the fact that no expenditure towards any charitable activity as per the trust deed has been debited to the P & L account or I/E account. Therefore, the basic question i.e "where is charity?" has remained unanswered in the three financial years. In absence of any charitable activity, the income of the trust will not be exempt u/s.11(1)(a) of the I.T. Act which presupposes that at least 85% of the income of the trust should be applied for charitable purposes in India during the relevant previous y....