Commissioner of Income Tax-V, vs. Sri Ch. Jawahar Babu

Court No. - 35 Case :- INCOME TAX APPEAL No. - 522 of 2011 Appellant :- The Commissioner Of Income Tax Allahabad Respondent :- Lok Sewa Sansthan Samiti Sonebhadra Counsel for Appellant :- Gaurav Mahajan,S.S.C. I.T. Counsel for Respondent :- Rishi Raj Kapoor Hon'ble Bharati Sapru,J. Hon'ble Neeraj Tiwari,J. Heard Shri Gaurav Mahajan, learned counsel for the appellant and Shri R.R. Kapoor, learned counsel for the respondent. This appeal under Section 260-A of the Income Tax, 1961(hereinafter referred to as the 'Act') has been filed by the department against the order of the Tribunal dated 08.03.2011 raising following questions of law: "(1) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in directing the CIT to grant approval u/s 80-G of the Act to the assessee by completely ignoring the fact that Registration u/s 12-A of the Act was denied by the CIT and the same is a precondition for grant of approval u/s 80-G of the act besides the conditions laid down in Clause (a) of the proviso to Section 80-G (5) were not fulfilled?" The facts of the case are that the assessee is a registered society which was engaged in charitable activities and applied for registration under Section 12-AA of the Act and also for relief under Section 80-G(5) of the Income Tax Act. Two appeals were filed. The application of the assessee under Section 12-AA of the Act was rejected in which appeal was filed which finally culminated in an appeal before this Court and this Court in Income Tax Appeal No.139 of 2011 passed a judgment on 02.07.2013 taking a view that there was no adverse material against the assessee to come to the conclusion that it was not a charitable institution or organisation and, therefore, it was liable to be registered under Section 12-A of the Act. As of today the assessee stands registered as a charitable institution under Section 12-A of the Act. The natural corollary is that this application under Section 80G(5) of the Act also becomes liable to be allowed.

The question of law in the present appeal is, therefore, decided in favour of the assessee and against the department. The appeal is accordingly dismissed. Order Date :- 20.2.2018 pks