2011 (5) TMI 1164

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....ptions) ["DIT(E)"], Bangalore, has directed the DIT(E) to renew the exemptions granted under Sec. 80G of the Income Tax Act, 1961 (hereinafter called as 'Act' for brevity) by order dt. 19.12.2008. 2. The respondent herein having been granted registration under Sec.12A and recognition under Sec. 80G of the Act upto to 31.3.2007, application was filed for continuation of the recognition under Sec. 80G of the Act to DIT(E). A show cause notice was issued to the respondent as to why the application for continuation should not be rejected on the ground that there is violation of the provisions of Sec. 11(5) of the Act as shares in a private company had been held for more than one year, contrary to the conditions stipulated in Sec.13(1....

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..... DESAI CHARITABLE TRUST vs. CIT (246 ITR 452) and in the case of ORPAT CHARITABLE TRUST vs. CIT reported in 256 ITR 690 the Tribunal found that the bonus shares were received as donation without being routed through income and expenditure account for the specific purpose being carried out by Nirmala Bangalore and Swachha Bangalore Project Fund in collaboration with Bangalore Corporation was continued by the assessee from the period prior to the assessment year 2004-05 and the amount received by way of dividend should also be included and the dividend received has also been credited to the Corpus held in Trust by the respondent - Trust. Wherefore, in view of the finding given by the DIT(E) that respondent-trust is spending the amount for ch....

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....s applicable to the assessment years 2007- 08 and 2008-09?" 6. We have heard the learned counsel appearing for the appellant. 7. The learned counsel appearing for the appellant reiterated the grounds urged in the appeal memo and submitted that the shares of Infosys which has been donated to the respondent - Trust for doing the charitable works meeting the objects of the respondent - Trust in discharging the charitable objects would not have held the shares for more than one year as the said shares do not fall within the purview of shares that can be held under Sec. 11(5) of the Act and since shares were held for more than one year without selling the same, there is violation of Sec.13(1)(d)(iia) r/w Sec. 11(5) of the Act. He has taken....