Skip to main content

Mere Fulfillment of Conditions u/s 10(23)(c) of IT Act would not make Assessee Eligible for benefit of S. 80G

In CIT v. M/S Rama Educational Society, the division bench of the Allahabad High Court held that benefit of section 80G of the Income Tax Act cannot be granted to assessee merely on ground that it satisfies all the conditions prescribed under section 10(23)(c) of the Income Tax Act. While quashing the ITAT order, the bench confirmed the order of the CIT denying exemption to the assessee for want of regular maintenance of Books of Accounts. Respondent-assessee, a society running a Dental College and Research Centre had availed exemption under s. 80 G of the IT Act. On expiry of the exemption, they made an application for renewal of the same. However, the Commissioner rejected the application on grounds that the department recovered and seized unaccounted cash amount belongs to the assessee during a search and the assessee was not properly maintaining its books of accounts. He was of the opinion that the exemption is not available to the assessee as they does not satisfies condition (iv) of Section 80 G (5) of the Income Tax Act. Before the Tribunal, assessee contended that they are entitled for approval of exemption since it satisfies all conditions under Section 10 (23 C) of the Income Tax Act. The Tribunal allowed the appeal and held in favour of the assessee. Aggrieved by the order, the department approached the High Court. The bench opined that in order to have the advantage of approval under Section 80 G of the Act it is mandatory for it to fulfill the other essential conditions prescribed under Sub-section (5) of Section 80 G of the Act which inter alia vide clause (iv) mandates for the maintenance of regular accounts of receipts and expenditure by such institution or the funds. It was therefore, held that in addition to fulfilment of the conditions as referred to above the approval for registration under Section 80 G of the Act cannot be granted until and unless the institution or the fund is found to be regularly maintaining the accounts of its receipts and expenditure. Comparing both the provisions of section 10(23)(c) and 80G, the bench pointed out that Section 10 (23 C) of the Act operate in a totally different field and the conditions contained in the section are not identical to the conditions as laid down in Section 80 G (5) of the Act. It was also noted that “Section 80 G (iv) contemplates maintenance of regular receipts and expenditure by the concerned institution. It does not talk about the maintenance of separate books of accounts. Therefore, the conditions provide in the two provisions are not identical but at variance as has been illustrated above by the comparison of one of the relevant conditions of the two provisions.” “The fulfilment of conditions under Section 10 (23 C) of the Act is only one of the conditions prescribed under Section 80 G of the Act but besides the said condition other conditions are also necessary to be satisfied for claiming benefit of Section 80 G of the Act. The respondent assessee failed to satisfy one of those conditions as mentioned earlier.”

Read more at: http://www.taxscan.in/mere-fulfillment-conditions-us-1023c-act-not-make-assessee-eligible-benefit-s-80g-allahabad-hc/8079/

Comments

Popular posts from this blog

MACT - Permanent disability - calculate - compensation - Supreme Court - Part 2

1) C. K. Subramonia Iyer vs. T. Kunhikuttan Nair - AIR 1970 SC 376
2) R. D. Hattangadi vs. Pest Control (India) Ltd. - 1995 (1) SCC 551
3) Baker vs. Willoughby - 1970 AC 467
4) Arvind Kumar Mishra v. New India Assurance Co.Ltd. - 2010(10) SCALE 298
5) Yadava Kumar v. D.M., National Insurance Co. Ltd. - 2010 (8) SCALE 567)



5.The heads under which compensation is awarded in personal injury cases are the following : Pecuniary damages (Special Damages)
(i)Expenses relating to treatment, hospitalization, medicines, transportation, nourishing food, and miscellaneous expenditure.
(ii)Loss of earnings (and other gains) which the injured would have made had he not been injured, comprising :
(a)Loss of earning during the period of treatment;
(b)Loss of future earnings on account of permanent disability.
(iii)Future medical expenses.
Non-pecuniary damages (General Damages)
(iv)Damages for pain, suffering and trauma as a consequence of the injuries.
(v)Loss of amenities (and/or loss of prospects…

Delay - condon - limitation

The proof by sufficient cause is a condition precedent for exercise of the extraordinary restriction vested in the court. What counts is not the length of the delay but the sufficiency of the cause and shortness of the delay is one of the circumstances to be taken into account in using the discretion.

Supreme Court of India
State Of Nagaland vs Lipok Ao & Ors on 1 April, 2005
Author: A Pasayat
Bench: Arijit Pasayat, S.H. Kapadia
           CASE NO.:
Appeal (crl.)  484 of 2005

PETITIONER:
State of Nagaland

RESPONDENT:
Lipok AO & Ors.

DATE OF JUDGMENT: 01/04/2005

BENCH:
ARIJIT PASAYAT & S.H. KAPADIA

JUDGMENT:
J U D G M E N T (Arising out of S.L.P. (Crl.) 4612 of 2003 ARIJIT PASAYAT, J.

Leave granted.

The State of Nagaland questions correctness of the judgment rendered by a learned Single Judge of the Gauhati High Court, Kohima Bench refusing to condone the delay by rejecting the application filed under Section 5 of the Limitation Act, 1963 (in short the 'Limitation Act') and conseque…

Passport - DRT - power to impound - High Court

1) Satwant Singh Sawhney v. D.Ramarathnam. Asst. Passport Officer, 1967 (3) SCR 52
2) Menaka Gandhi v. Union of India, 1978 (1) SCC 248
3) Industrial Credit and Investment Corporation of India Ltd. v. Grapco Industries Ltd., (1994) 4 SCC 710
4) Suresh Nanda v. Central Bureau of Investigation, 2008 (3) SCC 674
5) Damji Valaji Shah & another Vs. L.I.C. of India & others [AIR 1966 SC 135]
6) Gobind Sugar Mills Ltd. Vs. State of Bihar & others [1999 (7) SCC 76]
7) Belsund Sugar Co. Ltd. Vs. State of Bihar and others [AIR 1999 SC 3125]
8) Sanjeev R.Apte v. I.F.C.I. Ltd., and others, 2008 (154) DLT 77
9) Smt.Annai Jayabharathi v. The Debt Recovery Tribunal & Anr., CDJ 2005 Ker HC 171
10) Allahabad Bank v. Radhakrishna Maity, AIR 1999 SC 3426
11) Ramalinga v. Radha, 2011 (4) CTC 481
12) Sinnaswami Chettiar v. Aligi Goundan and others, AIR 1924 Madras 893 (OVERRULED)
13) Nallagatti Goundan v. Ramana Gounda and others, AIR 1925 Madras 170
14) Income Tax Officer v. M.K.Mohammad…