CIT vs. SETH MAKHAN LAL

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 147/ 2011 Commissioner of Income Tax, Alwar. ----Appellant Versus Seth Makhan Lal Mahawar Charitable Trust, 54, Raghu Marg, Alwar. ----Respondent _____________________________________________________ For Appellant(s) : Mr. Sameer Jain with Ms. Mahi Yadav. For Respondent(s) : Mr. Gunjan Pathak. _____________________________________________________ HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE DR. JUSTICE VIRENDRA KUMAR MATHUR Order 22/05/2017 1. By way of this appeal, the appellant has challenged the judgment and order of the Tribunal whereby the Tribunal has allowed the appeal of the assessee. 2. While admitting the appeal, this Court framed the following substantial question of law: “Whether udder the facts and circumstances of the case, and in law the Tribunal was justified in holding that assesse was entitled to exemption u/s 80G (5) contrary to Rule 11AA, Sections 11 and 12 of the Act?” 3 Heard learned counsel for the parties. 3.1 Counsel for the appellant contended that the Tribunal has seriously committed an error in reversing the view taken by the CIT(A) in as much as registration of the trust under Section 12-A was wrongly refused.

(2 of 2) [ITA-255/2009] 3.2 In our considered opinion, the very purpose of the trust is not to look after the activities personally. 3.3 In that way of the matter the only thing which is required to be said is whether the donation is used for the purpose for which the trust is created. 3.4 Thus the observations made by the Tribunal which reads as under:- “The assessments for earlier years 2005-06 and 06-07 have been competed under section 143(3). No irregularity or deficiency was noted by AO and he has mentioned in his order that all the details in respect of interest rent, dividend, donations etc. and books of account and supporting evidence have been maintained and produced which were examined on test check basis and found correct. Therefore, we feel that Ld. CIT was not justified in refusing the renewal under section 80G. We further noted that in similar circumstances in case of M/s. Ratnawali Charitable Trust, the Tribunal has directed to allow the renewal of exemption under section 80G. Therefore, in view of the above facts and circumstances and in view of the decision of the Tribunal, we direct ld. CIT to allow application of renewal of exemption under section 80G(5) of the Act.” 4. In view of the above the issue is answered in favour of assessee against the department. The appeal stands dismissed. ( VIRENDRA KUMAR MATHUR),J. (K.S. JHAVERI),J. B.M.Gandhi Supplementary - 1