TaxTMI 
TaxTMI 
2016 (1) TMI 369
X X X X Extracts X X X X
X X X X Extracts X X X X
....correct in Law and Facts, holding that the respondent assessee society's action in maintaining separate account in respect of vermicular project without bringing into society's account which is mandatory in view of provisions of Section 11 that assessee should maintain books of account in respect of grants, income received by it and its utilization? (2) Whether the Tribunal is correct in Law and facts, holding that the respondent assessee is not required to take the grant of money received from the Govt. of India, in its books which is contrary to the provisions of Sec.80G(5)(iv) of the Income Tax Act, 1961, which require maintenance of regular books of account in order to claim exemption under Sec.80G of the I.T.Act, 1961?....
X X X X Extracts X X X X
X X X X Extracts X X X X
....plication. It was contended by the respondent that it is running various educational institutions in Bagalkot District. It had also founded a foundation namely., 'S.S. Kadapatti Agriculture and Rural Development Foundation' to undertake Vermiculture Project, which was sanctioned by Government of India involving manufacture of organic manures. In terms of the order passed by the Ministry of Rural Development, the project was to be implemented by Vijay Mahantesh Vidyavardhak Sangha and co-ordinated by Zilla Panchayat, Bagalkot. Out of total sanctioned grant of Rs. 4.26 Crores, first installment of Rs. 1,29,74,000/- was sanctioned during the year 2006-07. On these among other reasons, respondent sought for renewal of exemption under Se....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that the exemption under Section 80G is extended to certain institutions, which are doing youmen services. Such exemption is subject to certain conditions, which inter alia include maintenance of proper accounts. 6. Assailing the order of the ITAT, learned Counsel submits that the Tribunal erred in reversing the order of the Commissioner of Income Tax without there being any cogent reasons to do so. He draws our attention to the reasoning of the impugned order in paragraph - 16 of the impugned order, wherein, the Tribunal has considered the merits of the case and arrived at a conclusion that the dispute is only with regard to some advances given to the Vermiculture Project by the Society and the Society had treated the said project as a ....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... Hence, the impugned order is liable to be set aside. 8. Per contra, learned Counsel appearing for the respondent while supporting the order of the Tribunal submits that the respondent - assessee is carrying on youmen service and submits that the impugned order does not suffer from any illegality and prays for dismissal of the same. 9. We have given our anxious consideration to the submission made at the bar and perused the records. 10. The principle ground upon which the Commissioner rejected the application is that proper accounts were not maintained by the respondent - assessee. The Commissioner has laboured substantially in adverting to the various entries in the Books to arrive at his conclusions. 11. Learned Counsel for t....