The Bengal Hosiery Manufacturer's Association, Kolkata v. DIT, Exemption, Kolkata, Kolkata

1 B IN THE INCOME TAX APPELLATE TRIBUNAL BENCH- B KO LKATA [ . . . . . . . . . .. . . .. . !' ] BEFORE SHRI B.R.MITTAL JUDICIAL MEMBER & SRI C.D. RAO ACCOUNTANT MEMBER # # # # / ITA NO. 2098 (KOL) OF 2010 THE BENGAL HOSIERY MANUFACTURERS ASSOCIATION KOLKATA. (PAN-AAAAT0347E) DIRECTOR OF INCOME-TAX (EXEMP.) KOLKATA.. (%& / APPELLANT ) - ) - - VERSUS -. (*+%&/ RESPONDENT ) %& - . !/ FOR THE APPELLANT: / SRI SOMNATH GHOSH *+%& - . ! / FOR THE RESPONDENT: / SRI P.C. NAYAK !/ / ORDER ( . .. . . .. . ) !' (C.D. RAO) ACCOUNTANT MEMBER : THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 03.09.2010 OF DIRECTOR OF INCOME-TAX (EXEMPTION) KOLKATA. THE A SSESSEE HAS RAISED SEVERAL GROUNDS WHICH ARE ALL DIRECTED AGAINST THE REJECTION OF THE APPLICATION FOR RENEWAL OF EXEMPTION CERTIFICATE U/S. 80G(5)(VI) OF THE ACT. THE GROUND S RAISED IN THIS APPEAL BY THE ASSESSEE READ AS UNDER :- 1. FOR THAT NONE OF THE CONDITIONS PRECEDENT EXI STED AND/OR HAS BEEN COMPLIED WITH AND/OR FULFILLED IN THE INSTANT CASE FOR REJEC TION OF APPLICATION OF THE APPELLANT FOR RENEWAL OF EXEMPTION U/S. 80G(5)(VI) OF THE INCOME TAX ACT 1961 AND THE IMPUGNED FINDING OF THE LD. DIRECTOR OF INC OME TAX (EXEMPTION) KOLKATA ON THAT BEHALF IS AB INITIO VOID ULTRA VIR ES AND NULL IN LAW. 2. FOR THAT THE LD. DIRECTOR OF INCOME TAX (EXEM PTION) KOLKATA GRAVELY ERRED IN PASSING THE IMPUGNED ORDER U/S. 80G(5)(VI) OF TH E INCOME TAX ACT 1961 REJECTING THE APPLICATION SEEKING RENEWAL OF EXEMPT ION WITHOUT CONSIDERING THAT THE APPELLANT HAD BEEN CARRYING ON GENUINE ACTIVITI ES OF CHARITABLE PURPOSE AND HIS PURPORTED FINDINGS ON THAT BEHALF ARE ALTOGETHE R ARBITRARY BASELESS UNWARRANTED AND PERVERSE. 3. FOR THAT THE LD. DIRECTOR OF INCOME TAX (EXEM PTION) KOLKATA MISREAD THE OBJECTS OF THE APPELLANT AND CONSIDERED ISSUES WHIC H ARE NOT GERMANE TO THE SCOPE AND AMBIT OF THE STATUTORY PROVISIONS CONTAIN ED IN S. 80G(5)(VI)OF THE 2 INCOME TAX ACT 1961 AND HIS PURPORTED ACTION OF RE JECTION OF THE APPLICATION FOR RENEWAL OF EXEMPTION DATED 03-09-2010 IS HIGHLY UNFAIR UNREASONABLE AND UNWARRANTED ON THE FACTS AND IN THE CIRCUMSTANCES O F THE INSTANT CASE. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A SOCIETY WHICH IS REGISTERED UNDER THE SOCIETIES REGISTRATION ACT 1860 ON 16/7/1945. IT WAS GRANTED REGISTRATION U/S. 12A OF THE ACT BY AN ORDER DATED 22/6/2001 WITH RETROSP ECTIVE EFFECT FROM 01/4/1997 WHICH IS STILL SUBSISTING. IT WAS ALSO GRANTED EXEMPTION CERTIFICATE U/S. 80G(5)(VI) OF THE ACT BY AN ORDER DATED 27/7/2001 FOR THE PERIOD 08/7/2001 T O 31/3/2006 WHICH WAS FURTHER RENEWED BY AN ORDER DATED 16/1/2007 FOR THE ASSESSM ENT YEARS 2007-08 TO 2009-10. THE ASSESSEE THUS FILED AN APPLICATION IN FORM 10G ON 1 0.3.2010 BEFORE THE D.I.T. (EXEMPTION) FOR RENEWAL OF EXEMPTION CERTIFICATE U/ S. 80G(5)(VI) OF I.T. ACT 1961. THE D.I.T. (EXEMPTION) VIDE HIS ORDER DATED 03.09.2010 REJECTED THE SAID APPLICATION BY HOLDING AS UNDER :- ON PERUSAL OF THE APPLICATION IT WAS OBSERVED THAT AUTHORITIES BELOW DID NOT RECOMMEND THE CASE. SUBSEQUENTLY IN ORDER TO GIVE THE APPLICANT ANOTHER OPPORTUNIRY THIS OFFICE HAD ISSUED LETTER DATED 19. 08.2010 FIXING HEARING ON 03.09.2010. IN COMPLIANCE AR HONORARY SECRETARY S. K. BHATTER APPEARED. ON DISCUSSION IT WAS FOUND THAT THE ACTIVITIES ARE BEN EFICIAL TO MANUFACTURES ONLY. IT WILL NOT BE COVERED U/S. 2(15) UNDER PUBLIC UTILITY . IT IS GOVERNED BY PRINCIPLE OF MUTUALITY. IN VIEW OF THE ABOVE DISCUSSI ON APPLICATION FOR RENEWAL OF EXEMPTION U/S 80G(5)(VI) OF THE INCOME TAX ACT 1961 IS HEREBY RE JECTED. 3. AT THE TIME OF HEARING BEFORE US THE LD. COUNS EL FOR THE ASSESSEE REFERRING TO SEVERAL OBJECT CLAUSES OF THE ASSESSEE-TRUST HAS SU BMITTED THAT THE ASSESSEE HAS BEEN GRANTED REGISTRATION U/S. 12A OF THE ACT SINCE 01/4 /1997 AND EXEMPTION CERTIFICATE U/S. 80G(5)(VI) OF THE ACT BY AN ORDER DATED 27/7/2001 F OR THE PERIOD 08/7/2001 TO 31/3/2006. THEREAFTER THE EXEMPTION CERTIFICATE WA S BEING RENEWED AND LAST RENEWAL WAS FOR THE PERIOD COVERING ASSESSMENT YEARS 2007-0 8 TO 2009-10. THE ASSESSEE THEREFORE APPLIED FOR RENEWAL OF EXEMPTION CERTIFI CATE U/S. 80G(5)(VI) OF THE ACT ON 10/3/2001 WHICH WAS REJECTED BY THE D.I.T. (EXEMPT ION) WITHOUT APPRECIATING THE OBJECT CLAUSE OF THE ASSESSEE-SOCIETY AND WRONGLY I NTERPRETING THE PROVISIONS OF SEC. 2(15) OF THE ACT. THE LD. COUNSEL FOR THE ASSESSEE FURTHER SUBMITTED THAT THE ASSESSEE HAS 3 BEEN CREATED WITH THE MAIN OBJECTS TO PROVIDE ASSIS TANCE AND SUPPORT SERVICES TO ENTREPRENEURS AND INVESTORS IN HOSIERY INDUSTRY AND FOR PROMOTION OF THIS INDUSTRY ADOPTED SEVERAL MEASURES INCLUDING SETTING UP OF TR AINING INSTITUTE FOR SUPPLYING SKILLED HANDS IN THE INDUSTRY WHICH IS WITHIN THE EXPRESSI ON OF ADVANCEMENT OF GENERAL PUBLIC UTILITY AND THUS FALLS WITHIN THE AMBIT OF THE DEF INITION CHARITABLE PURPOSE CONCEIVED IN THE PROVISIONS OF SEC. 2(15) OF THE ACT. HE FURTHE R SUBMITTED THAT THE DEPARTMENT HAS ALSO NOT DISPUTED THAT THERE IS NO PROFIT ELEMENT I N SUCH ACTIVITIES WHICH ARE RENDERED TO A SECTION OF THE PEOPLE WHO ARE ENTREPRENEURS IN HOS IERY INDUSTRY INASMUCH AS THE ASSESSEE IS NOT PROVIDING ASSISTANCE TO ANY SPECIFI ED INDIVIDUAL BUT TO THE ENTREPRENEURS IN HOSIERY INDUSTRY WHO CONSTITUTE A CLASS OF PEOPL E. ACCORDING TO HIM FURTHER IT IS SETTLED THAT CHARITABLE PURPOSE INCLUDES NOT ONLY R ELIEF TO THE POOR EDUCATION AND MEDICAL RELIEF ALONE BUT ADVANCEMENT OF OTHER OBJE CTS OF GENERAL PUBLIC UTILITY AS WELL. REFERRING TO THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF CIT VS. ANDHRA CHAMBER OF COMMERCE [55 ITR 722 (SC)] THE LD. COUN SEL FOR THE ASSESSEE SUBMITTED THAT TO SERVE A CHARITABLE PURPOSE IT IS NOT NECES SARY THAT THE OBJECT SHOULD BE TO BENEFIT THE WHOLE OF MANKIND OF EVEN ALL PERSONS LIVING IN A PARTICULAR COUNTRY OR PROVINCE. IT IS SUFFICIENT IF THE INTENTION IS TO BENEFIT A SECTION OF THE PUBLIC AS SPECIFIED FROM SPECIFIED INDIVIDUALS. HE FURTHER SUBMITTED THAT THE ASSESSEE HAS BEEN GRANTED REGISTRATION U/S. 12A WHICH IS STILL IN OPERATION BY TREATING IT AS AN INSTITUTION ESTABLISHED FOR CHARITABLE PURPOSE AND THIS REALITY BY ITSELF IS SUFFICIENT PR OOF OF THE FACT THAT THE ASSESSEE IS ESTABLISHED FOR CHARITABLE PURPOSES. THE D.I.T.(EXE MPTION) WHILE REJECTING EXEMPTION CERTIFICATE U/S. 80G(5)(VI) OF THE ACT HAS NOT STA TED THAT THE OBJECTS AS SET OUT IN THE MEMORANDUM OF ASSOCIATION ARE NOT FOR CHARITABLE PU RPOSES AND EXEMPTION CERTIFICATE GRANTED IN EARLIER TWO OCCASIONS UNDER SIMILAR OBJE CTS AND CIRCUMSTANCES WERE IN ANY WAY PERVERSE. HE THEREFORE SUBMITTED THAT AS THE ACTIVITY OF THE ASSESSEE TO PROVIDE VARIOUS FACILITIES IN THE FIELD OF HOSIERY TRADE AN D MAKING AVAILABLE ASSISTANCE TO THAT INDUSTRY IN THE SHAPE OF SUPPORT SERVICES TO ENTREP RENEURS AND INVESTORS IN CARRYING ON SUCH BUSINESS WAS DEFINITELY CHARITABLE WITHIN THE MEANING OF THE EXPRESSION ADVANCEMENT OF GENERAL PUBLIC UTILITY THE REJECT ION OF RENEWAL OF EXEMPTION CERTIFICATE U/S. 80G(5)(VI) OF THE ACT BY THE D.I.T. (EXEMPTION ) HOLDING THE ASSESSEES ACTIVITIES TO 4 BE BENEFICIAL TO MANUFACTURERS ONLY AND NOT COVERED U/S. 2(15) OF THE ACT UNDER PUBLIC UTILITY WAS WHOLLY IN CONFLICT WITH THE SETTLED LEG AL POSITION AND UNJUST. THE ASSESSEE ALSO FILED COPIES OF CERTIFICATE FOR EXEMPTION U/S. 80G(5)(VI) OF THE ACT GRANTED IN EARLIER TWO CONSECUTIVE OCCASIONS AND COPY OF CERTIFICATE O F REGISTRATION U/S. 12A DATED 22/6/2001 IN THE PAPER BOOK. HE THEREFORE SUBMITT ED THAT THE ASSESSEE SHOULD BE GRANTED RENEWAL OF EXEMPTION CERTIFICATE U/S. 80G(5 )(VI) OF THE ACT. 4. THE LD. DEPARTMENTAL REPRESENTATIVE ON THE OTH ER HAND RELIED ON THE ORDER OF D.I.T. (EXEMPTION). 5. WE HAVE HEARD THE PARTIES AND PERUSED THE MATER IAL PLACED ON RECORD. THE SOLE REASON ADOPTED BY THE D.I.T. (EXEMPTION) IN REJECTI NG THE APPLICATION MADE BY THE ASSESSEE FOR RENEWAL OF EXEMPTION CERTIFICATE U/S. 80G(5)(VI) OF THE ACT IS THAT THE ACTIVITIES OF THE ASSESSEE ARE BENEFICIAL TO MANUFA CTURERS ONLY AND THE SAME WILL NOT BE COVERED U/S. 2(15) OF THE ACT UNDER PUBLIC UTILITY. 6. IN THE PAPER BOOK AT PAGES 39 TO 50 THE ASSESS EE HAS FILED COPY OF RULES & REGULATION OF THE ASSESSEE-ASSOCIATION. THE ASSESSE E HAS ALSO FILED COPY OF MEMORANDUM OF ASSOCIATION ON PAGES 34 TO 38 OF THE PAPER BOOK INDICATING THE OBJECTS FOR WHICH THE ASSOCIATION IS ESTABLISHED WHICH ARE AS UNDER :- III. THE OBJECTS FOR WHICH THE ASSOCIATION IS ESTABLISHE D ARE:- (A) TO ADVANCE SCIENTIFIC COMMERCIAL AND TECHNICAL EDU CATION IN THE HOSIERY TRADE AND MANUFACTURE AND TO FOUND AND SUPPORT ESTABLISHM ENTS AND INSTITUTIONS FOR SUCH PURPOSES. (B) TO COLLECT CLASSIFY AND CIRCULATE INFORMATION RELA TING TO TRADE COMMERCE AND MANUFACTURE FOR THE INTEREST OF ITS MEMBERS OR IN S HORT TO DO EVERYTHING POSSIBLE FOR THE SPREAD OF SCIENTIFIC COMMERCIAL AND ECONOMIC KNOWL EDGE RELATING TO THE HOSIERY INDUSTRY. (C) TO MAINTAIN A READING ROOM AND OTHER RECREATION ROO MS TO AFFORD ACCOMMODATION FOR MEETINGS AND GATHERINGS OF ALL DE SCRIPTIONS WHETHER SOCIAL COMMERCIAL OR OTHERWISE AND TO LET UPON LEASE OR OT HERWISE THE WHOLE OR ANY PART OF THE PROPERTY OF THE ASSOCIATION FOR ANY OF THE ABOVE NA MED PURPOSES OR OTHERWISE. (D) TO SUBSCRIBE TO ANY LOCAL OR OTHER CHARITIES AND TO GRANT DONATION FOR ANY PUBLIC PURPOSE AND TO PROVIDE A SUPERANNUATION FUND FOR TH E SERVANTS OF THE ASSOCIATION OR OTHERWISE ASSIST SUCH SERVANTS THEIR WIDOWS AND CH ILDREN. 5 (E) TO FOSTER AND DEVELOP FRIENDLY RELATIONS MUTUAL HE LP AND COMMON UNDERSTANDING AMONG ALL WHO ARE DIRECTLY OR INDIREC TLY INTERESTED IN OR CONCERNED WITH THE MANUFACTURE OF HOSIERIES IN INDIA AND PARTICULA RLY IN BENGAL. (F) TO TAKE ALL STEPS WHICH MAY BE NECESSARY FOR PROMOT ING SUPPORTING OR OPPOSING LEGISLATIVE AND OTHER ACTIONS AFFECTING THE AFORESA ID INTERESTS BY ANY GOVERNMENT OR BY ANY LOCAL BODY OR BODIES AND IN GENERAL TO TAKE THE INITIATIVE TO SECURE THE WELFARE OF THE TRADE COMMERCE AND MANUFACTURER IN WHICH ITS MEMBE RS ARE INTERESTED AS SUCH. (G) TO PROTECT THE INTEREST OF THE MEMBERS OF THE ASSOC IATION AS EMPLOYERS AND TO TAKE STEPS FOR IMPROVING THE RELATIONSHIP BETWEEN T HE EMPLOYERS AND THE EMPLOYEES. (H) TO MAKE REPRESENTATIONS TO LOCAL CENTRAL OR IMPERI AL AUTHORITIES EXECUTIVE OR LEGISLATIVE ON ANY MATTER AFFECTING TRADE AND COMME RCE IN GENERAL AND THE HOSIERY TRADE AND MANUFACTURE IN PARTICULAR. (I) TO ARBITRATE IN THE SETTLEMENT OF DISPUTES ARISING OUT OF TRANSACTIONS IN HOSIERY AND OTHER GOODS BETWEEN THE PARTIES WILLING OR AGRE EING TO SUBMIT TO ARBITRATION IN ACCORDANCE WITH THE ARBITRATION RULES OF THE ASSOCI ATION FOR THE TIME BEING IN FORCE. (J) TO UNDERTAKE SPECIAL ENQUIRIES AND SUPPORT ANY ACTI ON FOR ARBITRATING IN OR SETTING DISPUTES BETWEEN RIVAL PARTIES AND TO SECUR E THE SERVICES OF EXPERT TECHNICAL AND OTHER MEN TO THAT END IF NECESSARY OR DESIRABLE PRO VIDED SUCH DISPUTES ARE REFERRED TO THE ASSOCIATION BY BOTH THE PARTIES CONCERNED. (K) TO UNDERTAKE SPECIAL ENQUIRIES AND INITIATE AND SUP PORT ANY ACTION FOR SECURING REDRESS OF LEGITIMATE GRIEVANCES CONNECTED WITH THE TRADE OR COMMERCE IN WHICH ITS MEMBERS ARE ENGAGED. (L) TO PROVIDE A CENTRAL AND CONVENIENT PLACE FOR FRIEN DLY GATHERINGS OF ITS MEMBERS. (M) TO PURCHASE OR OTHERWISE ACQUIRE LAND IN THE NAME OF THE ASSOCIATION AND BUILD UPON MAINTAIN PULL DOWN RE-BUILD ADD TO ALTER REPAIR ANY BUILDINGS OR PREMISES NECESSARY OR CONVENIENT FOR THE PURPOSE OF THE ASSO CIATION. (N) TO SELL MANAGE LEASE MORTGAGE DISPOSE OF OR OTHE RWISE DEAL WITH ALL OR ANY PART OF THE PROPERTY OF THE ASSOCIATION. (O) TO BORROW AND RAISE MONEY IN SUCH MANNER AS THE ASS OCIATION MAY THINK FIT. (P) TO INVEST ANY MONEY OF THE ASSOCIATION NOT IMMEDIAT ELY REQUIRED FOR ANY OF ITS OBJECTS IN SUCH A MANNER AS MAY FROM TIME TO TIME B E DETERMINED AND TO TRANSPOSE OR VERY SUCH INVESTMENTS. (Q) TO UNDERTAKE AND EXECUTE ANY TRUST OR ANY AGENCY WO RK WHICH MAY SEEM DIRECTLY OR INDIRECTLY CONDUCIVE TO ANY OF THE OBJE CTS OF THE ASSOCIATION. (R) TO AMALGAMATE WITH ANY ASSOCIATION OR SOCIETY HAVIN G OBJECT ALTOGETHER OR IN PART SIMILAR TO THOSE OF THIS ASSOCIATION. 6 (S) TO TAKE ANY ACTION WHICH MAY BE CONDUCIVE TO THE EX TENSION OF TRADE AND COMMERCE OF ITS MEMBERS OR INCIDENTAL TO THE ATTAIN MENT OF THE OBJECTS OF THE ASSOCIATION. (T) TO SUBSCRIBE TO BECOME A MEMBER OR TO CO-OPERATE W ITH ANY OTHER ASSOCIATION WHETHER REGISTERED OR NOT WHOSE OBJECTS ARE ALTOGET HER OR IN PART SIMILAR TO THOSE OF THIS ASSOCIATION AND TO PROCURE FROM OR COMMUNICATE TO A NY SUCH ASSOCIATION SUCH INFORMATION AS MAY BE LIKELY TO FORWARD THE OBJECTS OF THIS ASSOCIATION. (U) TO TAKE OVER THE ASSETS AND LIABILITIES AND THE RIG HTS AND PRIVILEGES OF THE PRESENT UNREGISTERED ASSOCIATION KNOWN AS THE BENGAL HOSIER Y MANUFACTURERS ASSOCIATION AND TO FUNCTION IN ALL RESPECTS IN CONTINUATION OF THE UNREGISTERED ASSOCIATION UNDER THE SAME NAME AND STYLE. (V) TO DO ALL SUCH THINGS AS MAY BE DIRECTLY OR INDIREC TLY CONDUCIVE OR INCIDENTAL TO THE CARRYING OUT OR ATTAINMENT OF THE ABOVE OBJECTS OR ANY ONE OF THEM AND IT IS HEREBY DECLARED THAT IN THE INTERPRETATION OF THIS CLAUSE THE MEANING OF ANY OF THE OBJECTS SHALL NOT EXCEPT WHERE OTHERWISE EXPRESSED IN SUCH PARAGR APH BE IN ANY WAY LIMITED OR RESTRICTED BY REFERENCE TO ANY OTHER OBJECTS OR PAR AGRAPH OR BY THE JUXTAPOSITION OF TWO OR MORE OBJECTS AND THAT IN THE EVENT OF ANY AMBIGUITY THE CLAUSE SHALL BE CONSTRUED IN SUCH A WAY AS TO WIDEN AND NOT TO RESTRICT THE POWER OF THE ASSOCIATION. THE ADMITTED FACTS ARE THAT THE ASSESSEE-ASSOCIATIO N WAS REGISTERED UNDER THE SOCIETIES REGISTRATION ACT SINCE 16/7/1945. FURTHER CONSIDER ING THE OBJECTS FOR WHICH THE ASSESSEE-ASSOCIATION CAME INTO EXISTENCE AS STATED ABOVE THE LD. D.I.T. (EXEMPTION) VIDE AN ORDER DATED 22/6/2001 GRANTED REGISTRATION U/S. 12A OF THE I.T. ACT TO THE ASSESSEE-ASSOCIATION WITH RETROSPECTIVE EFFECT FROM 01/4/1997 AND THE SAME IS STILL SUBSISTING. IT IS ALSO UNDISPUTED THAT THE ASSESSEE -ASSOCIATION WAS GRANTED EXEMPTION CERTIFICATE U/S. 80G(5)(VI) OF THE ACT BY AN ORDER DATED 27/7/2001 OF LD. D.I.T. (EXEMPTION) WHICH WAS FURTHER RENEWED FOR ANOTHER TERM COVERING THE PERIOD OF ASSESSMENT YEAR 2009-10 CONSIDERING THE SAME OBJEC TS CONTAINED IN THE MEMORANDUM OF ASSOCIATION. IN OUR CONSIDERED OPINION REGISTRA TION OF AN INSTITUTION U/S. 12A BY ITSELF IS A SUFFICIENT PROOF OF THE FACT THAT THE TRUST OR THE INSTITUTION CONCERNED IS CREATED OR ESTABLISHED FOR CHARITABLE/GENERAL PUBLIC UTILITY P URPOSES AND IT ENJOYS APPROVAL U/S. 80G OF THE ACT. THIS VIEW OF OURS IS FORTIFIED BY THE D ECISION OF HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF SONEPAT HINDU EDUCATIONAL & CHARITABLE SOCIETY VS. CIT [278 ITR 262 (P&H)] WHEREIN THEIR LORDSHIPS APPLYING TH E RATIO OF DECISION OF HONBLE SUPREME COURT IN THE CASE OF RADHASOAMI SATSANG VS. CIT [193 ITR 321 (SC)] HAS HELD AS UNDER :- 7 RES JUDICATA CAN BE APPLIED IN INCOME-TAX PROCEEDIN GS WHEN A FUNDAMENTAL ASPECT HAS PREVAILED THROUGH DIFFERENT ASSESSMENT YEARS WI THOUT BEING CHALLENGED ONE WAY OR THE OTHER. IN SUCH CASES IT IS NOT APPROPRIATE TO CHANGE THE POSITION IN A SUBSEQUENT YEAR. THEREFORE WHEN ON THE SAME SET OF FACTS AND CIRCUM STANCES OF THE CASE RENEWAL OF REGISTRATION U/S. 80G(5)(VI) HAS BEEN GRANTED FOR E ARLIER YEARS AND THERE BEING NO CHANGE IN THE FACTS AND CIRCUMSTANCES OF THE YEARS FOR WHI CH RENEWAL IS SOUGHT FOR WE DO NOT FIND ANY JUSTIFICATION TO REJECT THE ASSESSEES APP LICATION FOR RENEWAL OF EXEMPTION CERTIFICATE U/S. 80G(5)(VI) FOR ASSESSMENT YEAR 201 0-11 ONWARDS. 7. IN THIS CONNECTION WE MAY REFER TO THE ORDER OF THIS TRIBUNAL DATED 23/4/2009 IN THE CASE OF VIPASSANA KENDRA VS. DIT(E) [I.T.A.NO.1 6/KOL/2009] WHEREIN THE TRIBUNAL HAS EXPRESSED THE FOLLOWING VIEW :- 4. FURTHER IT IS ALSO NOT DISPUTED THAT THE ASSE SSEE-TRUST WAS GRANTED REGISTRATION U/S. 12AA AND EXEMPTION U/S. 80G VIDE ORDER DATED 9 /12/1985 AND TILL ASSESSMENT YEAR 2008-09 RENEWAL OF EXEMPTION CERTIFICATE U/S. 80G(5 )(VI) HAS BEEN GRANTED. FOR THE ASSESSMENT YEAR 2009-10 ONWARDS THE ASSESSEE HAS F ILED APPLICATION FOR RENEWAL OF EXEMPTION CERTIFICATE. THEREFORE WHEN ON THE SAME SET OF FACTS AND CIRCUMSTANCES OF THE CASE RENEWAL OF REGISTRATION U/S. 80G(5)(VI) H AS BEEN GRANTED FOR EARLIER YEARS AND THERE BEING NO CHANGE IN THE FACTS AND CIRCUMSTANCE S OF THE YEARS FOR WHICH RENEWAL IS SOUGHT FOR WE DO NOT FIND ANY JUSTIFICATION TO REJ ECT THE ASSESSEES APPLICATION FOR RENEWAL OF EXEMPTION CERTIFICATE U/S. 80G(5)(VI) FO R ASSESSMENT YEAR 2009-10 ONWARDS. IN VIEW OF THE ABOVE D.I.T.(EXEMPTION)S ORDER REJ ECTING THE ASSESSEES APPLICATION U/S. 80G (5)(VI) IS QUASHED. WE DIRECT THE D.I.T. (EXEMPTION) TO GRANT RENEWAL OF EXEMPTION CERTIFICATE TO THE ASSESSEE FOR THE PERIO D FOR WHICH THE APPLICATION WAS FILED. HENCE THE GROUNDS OF APPEAL TAKEN BY THE ASSESSEE A RE ALLOWED . RESPECTFULLY FOLLOWING THE ABOVE DECISION OF THE TR IBUNAL WE FIND NO JUSTIFICATION ON THE PART OF THE D.I.T. (EXEMPTION) TO REJECT THE AS SESSEES APPLICATION FOR RENEWAL OF EXEMPTION U/S. 80G(5)(VI) OF THE ACT. HE IS THERE FORE DIRECTED TO ALLOW THE SAME. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE IS AL LOWED. 0 !/ '1! 2 1) 3 04 THIS ORDER IS PRONOUNCED IN OPEN COURT ON 28.02.2011. SD/- SD/- ( . . . . . . . . ) ( . .. . . .. . ) !' (B.R.MITTAL) JUDICIAL MEMBER (C.D.RAO) ACCOUNTANT MEMBER ( (( ( ' ' ' ') )) ) DATE: 28-02-2011 8 !/ - *556 7!689- COPY OF THE ORDER FORWARDED TO : 1. %& / THE APPELLANT : .THE BENGAL HOSIERY MANUFACTURERS ASSOCIATION 219 BIPIN BEHARI GANGULI LANE 1 ST FLOOR KOLKATA-700 012. 2 *+%& / THE RESPONDENT : D.I.T. (EXEMPTION) KOLKATA. 3. 5/)/ THE CIT KOL- 4 . <53 *5) / DR ITAT KOLKATA BENCHES KOLKATA 5. GUARD FILE . +6 *5/ TRUE COPY !/)1/ BY ORDER (DKP) > ? / DY/ASSTT. REGISTRAR .