2004 (1) TMI 29

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...., 1961, up to March 31, 2001. The trust applied for renewal of recognition under section 80G(5) to the Director of Income-tax (Exemption) and the Director of Income-tax has rejected the renewal sought for by the petitioner. The same is challenged in this petition. The respondents have entered appearance. Sri Javali, learned counsel, invites my attention to the material facts to contend that the Commissioner has committed an error in not noticing the facts and the law in the case on hand. He says that the object of the trust is not in any way get diluted by the petitioner warranting "no renewal" on the facts of this case. He relies on the judgments of the Gujarat High Court in N. N. Desai Charitable Trust v. CIT [2000] 246 ITR 452; CIT v.....

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....unds since its inception or during the last year whichever is sought. Sub-rule (3) provides for calling for such further documents or information from the institution and it further provides for such enquiries to be made as he may deem necessary as to satisfy himself about the genuineness of the activities of the institution. After satisfaction, approval can be granted in the matter. Sub-rule (5) provides for rejection after recording these notes. The authority in paragraph 2 notices the financial results for the last three years. The authority notices various facts such as withdrawal of substantial amount and using them thereafter/usage of logo on the basic concert/withdrawal of Rs. 9 lakhs for purchasing a site in cash/non-availability of....

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....g the performance is the real question involved in the case on hand. N. N. Desai Charitable Trust v. CIT [2000] 246 ITR 452 (Guj) is a case relied on by the petitioner. A reading of the said judgment would show that in the said case, the Commissioner has rejected the application after noticing these facts. The court noticed the order of the Commissioner refusing approval is founded on wholly irrelevant considerations by trenching upon the field of the Assessing Officer by pronouncing on the taxability or non-taxability of any income in respect of the assessments for the past year which are yet to be completed. In those circumstances this court interfered in that case. Desai Charitable Trust [2000] 246 ITR 452 judgment of the Gujarat High....

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....icable to the facts of this case. The next judgment of the Allahabad High Court is the case of Fifth Generation Education Society v. CIT [1990] 185 ITR 634. This again is a case with regard to exemption in the matter. The Andhra Pradesh High Court in the case of CIT v. Trustees of H. E. H. the Nizam's Charitable Trust [1981] 131 ITR 497 considered various provisions of the Act. On the facts, the court ruled that the assessee was entitled to benefits under exemption. The judgment of ITO v. H. P. Vishweswaraiah [2001] 250 ITR 863 (Karn) is a judgment in the light of the order passed by the Tribunal. The court ruled that equitable interpretation is preferred to literal construction. The respondent has relied on a judgment of the Su....