TaxTMI 
TaxTMI 
2014 (10) TMI 828
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....p; 1. That the learned Commissioner of Income-tax-I, Ludhiana has erred in rejecting the application of the appellant-trust for the grant of renewal of exemption under section 80G of the Income-tax Act, 1961 by not considering the fact that the trust was registered and had been granted registration under section 12AA(1)(b)(i) of the Income-tax Act, 1961. 2. That the learned Commissioner of Income-tax-I, Ludhiana has erred in giving his findings that the trust does not fulfil the conditions necessary for renewal of exemption under section 80G(5) read with rule 11AA(5) of the Income-tax Act, 1961, whereas the trust had already been granted exemption under the said section in the ea....
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.... asked the assessee to furnish certain information/documents along with books of account. The assessee filed reply before the learned Commissioner of Income-tax and produced the relevant documents. The assessee was directed to explain why the trust has been registered under the Societies Registration Act, 1860 when it was already registered with sub-registrar as a trust. The society cannot be taken to the court for criminal breach of trust by the trustees. The rules and regulations speaks of a supplementary deed and some trustees have been changed/dropped and new one have been coped. How the foreign income is exempt ? The assessee filed reply to the same. It is not in dispute that earlier registration under section 12AA has been granted to ....
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....s made before authorities below and referred to paper book-77 and 78 to explain the objects of the assessee to provide food for destitutes and hospital facility to poor and needy. He has submitted that registration under section 12A have already been granted to the assessee along with approval under section 80G of the Income-tax Act and no change in facts were found as were considered earlier. The learned Commissioner of Income-tax on the same facts issued "show-cause notice" for review of the registration already granted under section 12AA of the Income-tax Act but on being satisfied with the explanation of the assessee, dropped/filed the proceedings vide order dated March 31, 2013, copy of the same is filed at page 1 of the second paper b....
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....on is confirmed by the hon'ble Punjab and Haryana High Court in the case of CIT v. Bhhola Bhandari Charitable Trust in I. T. A. 238/2012 dated January 30, 2013 [2013] 351 ITR 469 (P&H) in which it was held that once the statute has given perpetuity to the exemptions granted under section 80G(5) of the Act, the same cannot be withdrawn without issuing show-cause notice in terms of the statutory provisions in the manner prescribed by law. He has, therefore, submitted that the learned Commissioner of Income-tax should not have withdrawn the exemption granted to the assessee and should have continued with the same. 4. On the other hand, the learned Departmental representative relied upon impugned order and submitted that section 293C of th....
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....erms of the statutory provi sions in the manner prescribed by law." 6. The assessee, in view of the above judgment of the hon'ble Punjab and Haryana High Court, need not to make a request for extension of the approval under section 80G of the Act. The same would have been continued and could have been withdrawn by the learned Commissioner of Income-tax only in accordance with law. However, in this case, as is seen, learned Commissioner of Income-tax has not exercised any power for withdrawal of the approval already granted under section 80G(5) of the Income-tax Act in the case of the assessee. The learned Commissioner of Income-tax merely on the application of the assessee for renewal of exemption under section 80G passed the impugned ....
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....uld not change the aims and objects of the assessee-trust. It may also be noted here that after passing of the impugned order on August 24, 2011 the learned Commissioner of Income- tax also issued show-cause notice on November 14, 2011 for review of registration granted under section 12AA of the Act. Copy of the notice is placed on record. The learned Commissioner of Income-tax noted almost the same facts which have been noted in the impugned order for cancellation of the registration under section 12AA of the Act. However, the learned Commissioner of Income-tax, later on filed these proceedings and dropped the cancellation of registration under section 12AA of the Income- tax Act, 1961 (in short "the Act") vide order dated March 31, 2013. ....