KESHAB SMARAK SANSKRITI SURABHI,KACHAR vs. CIT(EXEMPTION), KOLKATA, KOKLATA

आदेश / O R D E R Per Dr. A. L. Saini: The captioned appeal filed by the assessee, is directed against theorder passed by the Commissioner of Income Tax (Exemption) [hereinafter referred to as the ‘CIT(Exemption)’], Kolkata, under section 80G of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’), dated 27.03.2017. 2.The appeal filed by the assessee trust, is barred by limitation by 73 days. The assessee has moved a petition requesting the Bench to condone the delay. We heard the party on this preliminary issue. Having regard to the reasons given in the petition, we condone the delay and admit the appeal for hearing.

Keshab Smarak Sanskriti Surabhi

6.We have given a careful consideration to the rival submissions and perused the materials available on record and after hearing the ld. DR for the Revenue, we note that ld CIT(E) has passed the order rejecting approval U/s 80G of the Income Tax Act 1961, merely stating that he was of the opinion that “ this is not a fit case for approval U/s 80G of the Income Tax Act”. Having gone through the order of ld. CIT(E), we note that the rejection of approval under section 80G of the Income Tax Act, is without assigning any reason or without passing speaking order. The ld. CIT(E) did not explain the reasons as to why the assessee`s case is not a fit case for approval under section 80G of the Act.

The ld Counsel for the assessee submitted before us that registration certificate of the trust under section 12AA is in force and has not been cancelled by the ld CIT (E ). The assessee trust has been carrying on charitable activities as per its object clause and in spite of this, ld. CIT(E) has denied approval under section 80G of the Act without assigning any reasons.

Keshab Smarak Sanskriti Surabhi We note that assessee`s trust registration under section 12AA has not been cancelled therefore a reasonable presumption can be drawn that assessee’s trust is carrying on charitable activities within its objects.

We are of the opinion that so far as grant of registration u/s 12AA of the Act is concerned, the CIT(Exemption)’s jurisdiction is only to verify the objectives of the institution and genuineness of the activities, meaning thereby that, he has to satisfy himself that the objects are charitable in nature and the activities being carried on or to be carried on are genuine, meaning thereby that, they are in consonance forachieving of charitable object and nothing else.

Considering the factual position explained above, we are of the view that this issue needs to be examined by the ld. CIT(E) that why the assessee`s case is not fit for approval under section 80G of the Act. Therefore, we direct the ldCIT(E ) to examine the objectives of the trust and the fact that registration certificate of the trust U/s 12AA is in force, and then, in that circumstances why and how the approval U/s 80G of the Act should not be granted. Therefore, we deem it fit and appropriate in the interest of justice and fair play to give directions to CIT(E) to adjudicate the issue in accordance with law after providing opportunity to the assessee of being heard.

Order is pronounced in the open court on 20/04/2018.