TaxTMI 
TaxTMI 
TaxTMI 
2016 (3) TMI 410
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....the impugned order was passed on 31.5.2012 beyond the prescribed limit of six months as mandated by Rule 11AA sub-rule (6) of Income-tax Rules, 1962 [for short, 'the Rules'] hence the order of rejection is barred by limitation and not sustainable in law. The ld. Counsel vehemently contended the impugned order may be set aside and the Revenue authorities may be directed to give approval u/s 80G of the Act. He also placed reliance on the proposition laid down by ITAT 'E' Bench New Delhi in the case of Mayo College Old Boys Association ITA No. 2010/Del/2010 vide order dated 19.11.2010 and order of ITAT Amritsar Bench in the case of S. Lakha Singh Bahra ITA No. 282/Asr/2010 order dated 15.6.2011 and order of ITAT Lucknow 'Á' Bench in the case of Indra Gramin Swayamsevi Aspatal Samiti Trust Vs. CIT dated 7.8.2013 and submitted that the CIT failed to adjudicate the application of the assessee for grant of approval u/s 80G(5)(vi) of the Act and failed to take appropriate action within prescribed time limit u/s 11AA within the prescribed time limit u/s 11A(6) of the Rules then the order has to be held as time barred and not sustainable. He further contended that in this situation, t....
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....plying with the direction of the Commissioner under sub-rule 3 of Rule 11AA of the I.T. Rules, 1962, as contemplated under proviso to sub-clause (6) of the said Rule. In view of this, the Ld. CIT, in terms of Rule 11AA (6), should have passed an order on 15.04.2010. However, the date mentioned on the face of the order passed by the CIT, is 30th April, 2010.Thus, there is violation of Rule 11AA(6) of the Incometax Rules, 1962. However, the delay in passing the order is of 15 days only. The Ld. CIT, has rejected the application for approval under section 8oG(s) of the Act, vide order dated 30th April, 2010. However, as discussed earlier, the order was not passed within prescribed time limit. 5.2. The Ld. Counsel for the assessee placed reliance on the decision of Hon'ble Allahabad High Court, in the case of Society For the Promotion of Education Adventure Sport &Conservation of Environment Vs. Commissioner of Income Tax & Ors. 2008) 5 DTR (All) 329, which was rendered in the context of registration under section 12A of the Act. A bare perusal of the true ratio relied upon by the assessee reveals that in the event of non-adherence to prescribed time limit under section 12AA(2) ....
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....nces for non-passing of such order. The assessee has done what was expected of it under the law. The department should have acted vigilantly to pass an appropriate order in the matter. Having not done so, the competent authority has placed the assessee in a jeopardy and helpless situation. Thus, negligence on the part of the revenue authority cannot be conferred judicial benediction. The assessee- appellant, cannot be kept at the mercy of the revenue authority, having complied with his part in the matter, as it would subvert the soul of rule of law. The case of the assessee, is also supported by the decision of ITAT, Bangalore Bench, in the case of Karnataka Golf Association Vs. Director of Income-Tax (Exemption) (2005) 272 ITR (A.T.) 123. 5.6. In view of the above legal and factual discussions and following the decision cited by the assessee (supra), the assessee is legitimately entitled for approval of renewal, as applied for. However, the revenue is free, if so advised, to take appropriate action in the matter in terms of relevant provisions of the Act. Hence, the appeal of the assessee is allowed. 5.7. In the result, the appeal filed by the assessee stands allowed." 6. In ....
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....ot approved u/s 10 (23) relating to exemption from tax of sports associations and institutions having their object as,- the promotion, control and regulation and engagement of specified sports and games. In the alternative, it was pleaded by Ld. AR that grant of renewal of exemption u/s 80G, during the subsistence of 12AA cannot be denied on the ground that the assessee does not carry on any charitable activity. For this purpose, he has placed reliance on the following decisions:- "NN Desai Charitable Trust vs. CIT 246 ITR 452 (Guj) : authority examining the question whether a fund or institute is eligible to be certified for the purpose of Section 80G is not to act as an A.O.; once the applicant was registered u/s 12A and was granted approval u/s 80G (5) and also a renewal thereafter, CIT was not justified in refusing further renewal of approval on the ground that the income of the applicant trust was likely to be included in the taxable income for not complying with the requirement of Section 11. Sonepat Hindu Educational Charitable Trust vs. CIT 278 ITR 262 (P & H): It was held that while dealing with the application u/s 80G(5), the scope of enquiry by CIT extends to eligi....
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....withdrawn till date. If it is so, then, in our considered opinion, renewal of exemption u/s 80G(5) could not be denied to the assessee and the case relied upon by Ld. AR and reproduced in the above part of this order fully supports such conclusion. Therefore, we find no justification in rejection of the claim of the assessee unless it is shown that the charitable status granted to the assessee by the certificate issued u/s 12A has been withdrawn. Therefore, we direct Ld. DIT (E) to grant the renewal to the assessee u/2 80G". 8. In the light of the above dicta when we analyse the facts of the present case, we note that the registration granted to the assessee u/s 12A of ht Act as charitable association is existing and has not been shown to have withdrawn or cancelled till date. It is the situation in our considered opinion the grant of approval u/s 80G of the Act cannot be denied or rejected. The preposition laid down by the ITAT Amritsar and New Delhi, as cited by the assessee and discussed above also strongly support the grant of approval u/s 80G of the Act. Thus we are inclined to hold that there is no good cause or reason before the competent authority and we are unable to see....