2009 (7) TMI 14

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....g to Petitioner, they are publishing two popular science magazines (Virat Surya (ii) Kids' Science. It has also five powerful telescopes, mini planetarium and exhibition of a large number of frames. In 2005, the Department of Science and Technology, Ministry of Science and Technology, Government of India has awarded the Indian Planetary Society its very prestigious National Award for carrying out scientific activities. It has been organizing international conferences. It has published various research publications as set out in the Petition and it is not necessary for us to refer to them in extenso. The Petitioners have also placed before us other material to show the research work in the form of publication that they are carrying on. 3. Petitioner made their first application for recognition as Scientific and Industrial Research Organization (SIRO) vide letter dated 24.08.2001 to the Ministry of Science and Technology New Delhi, Department of Scientific and Industrial Research for the period of 01.04.2001 to 31.3.2004. This application was followed by the application for approval u/s. 35(1)(ii) of the Income Tax Act, 1961 dated 28.8.2001 for the period 01.04.2001 to 31.3.2004 add....

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....ter that wrote to C.B.D.T. for review of the order. That was rejected on the ground that there was no provision for review. Petitioner thereafter received communication seeking information about the Petitioner's application for the period 1.4.2006 onwards which the Petitioner has submitted. Correspondence thereafter ensued between the Petitioner and C.B.D.T. By communication of 24.3.2008 the Petitioners application for the period 1.4.2006 to 31.3.2009 has been rejected. A review Petition filed has also been rejected and hence, the present petition. 6. It may be pointed out that for the period from 1.4.1962 to 31.3.1969 the Prescribed Authority under Section 35 of the I.T. Act was C.S.I.R., I.C.A.R. and I.C.M.R. From 1.4.1969 to 31.3.1975 apart from the three earlier mentioned bodies, it also included the Indian Council of Social Science Research. From 1.4.1975 to 31.10.1977, in so far as research in the fields of agriculture, animal husbandry and fisheries, the Indian Council of Agricultural Research was so designated and in so far as research in the field of other natural or applied science the prescribed authority was the Secretary, department of Science and Technology, Governme....

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....e with the guidelines in the manner and subject to such conditions as may be prescribed; and (B) such association, university, college or other institution is specified as such, by notification in the Official Gazette, by the Central Government. (iii)............................................................. Provided........................................... Provided .......................................... Provided further that the Central Government may, before granting approval under clause (ii) or clause (iii), call for such documents (including audited annual accounts) or information from the scientific research association, university, college or other institution as it thinks necessary in order to satisfy itself about the genuineness of the activities of the scientific research association, university, college or other institution and that Government may also make such inquiries as it may deem necessary in this behalf; Provided that any notification issued, by the Central Government under clause (ii) or clause (iii), before the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President, shall, any one time, have effect for such ....

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....er section 35(1)(ii). If the provisos of section 35(1) are seen C.B.D.T. Is the prescribed authority in certain cases. However, it certainly is not the organization covered under Section 35(1)(ii). In the absence of any material on this count alone, the order is liable to be set aside and the matter remanded to the Government of India for reconsideration according to law. 12. The other aspect of the matter is while considering application under section 35(1)(ii), the amendments have been made from time to time as set out in the earlier part of our order. The earlier prescribed authority were the organizations concerned with science and technology or Agricultural or medicine. In other words a body of persons who would be conversant with the subject. In so far as scientific research association is concerned, this has undergone various changes and now the power has been conferred on the Central Government. Even here we find that the Central Government whilst deciding the matter is empowered to make such inquiries as it may think necessary in this behalf. In our opinion, the application of mind in the absence of the person discharging the function having the expertise must be to make ....