SANSKARDHAM KELVANI MANDAL,MUMBAI vs. DDIT (E), MUMBAI

Order u/s.254(1)of the Income-tax Act,1961(Act) लेखा सद�य लेखा सद�य राजे�� राजे�� केकेकेके अनुसार अनुसार PER RAJENDRA, AM- लेखा लेखा सद�य सद�य राजे�� राजे�� अनुसार अनुसार Challenging the order dated 25.10.2010 of director of Income tax(Exemtion),Mumbai (DIT- E),the assessee -trust has filed the present appeal. Brief facts: 2.The assessee had filed an application for grant of certificate u/s.80G of the Act on 21.4. 2009, it was accompanied with various details and was filed in prescribed Form -10G.Vide his letter,dt.22.9.10,the DIT-E directed the assessee to furnish break-up of donation and other income for verification purpose.As per the DIT(E) the assessee did not comply with the directions.He issued a reminder on 22.12.2009.The assessee filed details vide its letter dated 11.8.2010 , 23.8.2010 21.9.2010.On 11.10.2010 the DIT-E issued a show cause notice to the assessee and vide his order,dt. 25.10.2010,he held that the assessee had failed to fulfill the mandatory provisions and had contravened the provisions as laid down under Explanation to section 80G(5).Finally,he rejected the application filed by the assessee. 3.Before us, the Authorised Representative (AR)stated that DIT-E was duty bound to reject or accept the application within a period of six months of filing of application, that he had passed the order in Oct.2010 whereas the application was filed in April 2009, that the order was invalid.He referred to the judgments of Maheshwari Foundation (56 taxmann .com 393), Pujyashri Jalaram Bapa Matoshri Virbaina Charitable Trust(55taxmann52).Departmental Repersentative (DR) supported the order of the DIT(E). 4.We have heard the rival submissions and perused the material before us.We find that the assessee had filed the application for grant of certificate u/s. 80G of the Act on 21.04.2009, the DIT-E had passed the order on 25.10.2010.The Rule-11AA of the Income tax Rules, 1962, (Rules) mandates that the order for rejecting or granting the certificate has to be passed within six months of filing of the application.In this case the letter was issued on 22.10.2009 to the assessee trust and it was directed to furnish certain details.In our opinion,he should have passed the order by that time. Instead of passing an order the DIT-E started making queries after a lapse of period of six months.Therefore, we are of the opinion that his order was not valid.In the case of Maheshwari Foundation (supra), the Hon’ble Karnataka High

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