2015 (5) TMI 117

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....12.07.2000. It filed an application for renewal of the recognition granted under Section 80G of the Act on 31.03.2008. The authorities called for certain details in connection with the renewal of the recognition and the same was furnished. The assessee was running a Hostel for students, for which charges were collected for both boarding and lodging. According to the assessee it was treated as a charitable purpose and Section 80G benefit was given up to 31.03.2008. Even after the amendment to Section 2(15) of the Act without prejudice to its applicability, in view of the provisos, the position will be the same if the gross revenue from business was less than Rs. 25 lakhs. The Director of Income tax (Exemptions) was not convinced. Therefore, ....

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....would be one without jurisdiction. His case is that, the application for renewal was made on 31.03.2008. The order rejecting or granting the benefit should have been passed on or before 30th September 2008. The order is passed on 06.10.2008 beyond the period prescribed under the law and therefore, he submits that the impugned order requires to be set-aside. 6. Per contra, the learned counsel appearing for the revenue submitted that if an order is passed within the prescribed period, it does not mean that permission is granted. There is no such deemed permission. Therefore, he submits that the impugned order is valid and illegal. 7. The question is not whether a deemed permission is granted or not. The question is whether an order passed b....

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....d down in clauses (i) to (v) of sub-section (5) of section 80G are not fulfilled, he shall reject the application for approval, after recording the reasons for such rejection in writing : Provided that no order of rejection of an application shall be passed without giving the institution or fund an opportunity of being heard. (6) The time limit within which the Commissioner shall pass an order either granting the approval or rejecting the application shall not exceed six months from the date on which such application was made: Provided that in computing the period of six months, any time taken by the applicant in not complying with the directions of the Commissioner under sub-rule (3) shall be excluded." 8. A reading of the aforesaid pr....