2001 (12) TMI 36

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Act in view of the fact that the petitioner had already been certified to be a charitable trust right from June 10, 1993, till March 31, 2000. It is undisputed position that the petitioner-trust has fulfilled all other requirements as stipulated under the provisions of the Act for being entitled to certificate under section 80G of the Act. The respondent by his order dated February 23, 2001 (exhibit B) refused to grant approval under section 80G(5) for the financial year April 1, 2000, to March 31, 2001, because according to the respondent, the petitioner-trust had acted in contravention of section 11(5) of the Act when it had invested Rs. 4,50,000 as deposit with Modem Denim Ltd. and another sum of Rs. 4,50,000 as deposit with Mode....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... requirement on the part of the assessee-trust as discussed in detail in the order dated February 23, 2001. Once again in para. 8 of his order, the respondent states as under: "In the present case, the requirement of recording satisfaction by the Commissioner of Income-tax in writing that conditions laid down in clauses (i) to (v) of sub-section (5) of section 80G cannot be complied with because, as discussed in the order dated February 23, 2001, there is non-compliance to clause (i) of section 80G(5) of the Income-tax Act, 1961." Therefore, it is apparent that the respondent has not taken care to apply his mind afresh even though directed by this court. He has merely referred to his earlier order and rested content with that. This wa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....omputation of the total income of the receipts of such institution or fund, depends on fulfilment of further conditions which may or may not exist at the close of the year and has no direct relation to the purpose for which the provision is made. The latter falls in the realm of the assessment of the trust, institution or fund which derives income which is not ordinarily includible in its total income. The liability to assessment is not affected by issuance of recognition certificate or approval certificate issued under clause (vi) of sub-section (5) of section 80G nor does it depend upon whether the donor is ultimately getting deduction in respect of such donation." Applying the aforesaid ratio to the facts on hand, it is apparent that ....