Case Note & Summary
The appellant, Sri Narayana Guru Prasaditha Sangha, is a society registered under the Karnataka Societies Registration Act, 1960. It was granted registration under Section 12A and approval under Section 80G(5)(vi) of the Income Tax Act, 1961, initially for the period 17.02.2004 to 31.03.2005, and subsequently renewed for 01.04.2005 to 31.03.2008. On 06.03.2008, the assessee applied for further continuation of approval. The Commissioner of Income Tax, Mangalore, rejected the application, and the Income Tax Appellate Tribunal, Bangalore Bench 'B', affirmed the rejection by order dated 29.05.2009 in ITA No.4/Bang/2009. The assessee then filed this appeal under Section 260A of the Act. The High Court heard the matter and considered whether any substantial question of law arose. The court noted that the approval had lapsed on 31.03.2008 and the application for renewal was filed on 06.03.2008, which was within the period of approval. However, the Commissioner had rejected the application on other grounds. The court found that no substantial question of law was involved and dismissed the appeal, upholding the orders of the authorities below.
Headnote
A) Income Tax - Charitable Trust - Approval under Section 80G(5)(vi) - Renewal - Time Limit - The assessee-society, registered under Karnataka Societies Registration Act, 1960, was granted approval under Section 80G(5)(vi) for periods 17.02.2004 to 31.03.2005 and 01.04.2005 to 31.03.2008. The application for further renewal was filed on 06.03.2008, but the earlier approval expired on 31.03.2008. The Commissioner rejected the application, and the Tribunal affirmed. The High Court held that the approval lapsed on 31.03.2008 and the application filed on 06.03.2008 was within time, but the Commissioner's rejection was based on other grounds. However, the court found no substantial question of law and dismissed the appeal. (Paras 2-4)
Issue of Consideration
Whether the assessee-society is entitled to continuation of approval under Section 80G(5)(vi) of the Income Tax Act, 1961, when the application for renewal was filed after the expiry of the earlier approval period.
Final Decision
The High Court dismissed the appeal, holding that no substantial question of law arose. The orders of the Commissioner and ITAT were upheld.
Law Points
- Section 80G(5)(vi) of Income Tax Act
- 1961
- approval renewal
- time limit
- lapse of approval
- no automatic renewal
Case Details
2015 LawText (KAR) (06) 70
Vineet Saran, Aravind Kumar
Smt. Jineetha Chatrjee for Sri. S. Parthasarathi (for appellant), Sri E.I. Sanmathi and Sri K.V. Aravind (for respondent)
Sri Narayana Guru Prasaditha Sangha
The Commissioner of Income Tax
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Nature of Litigation
Appeal under Section 260A of Income Tax Act, 1961 against order of ITAT affirming rejection of application for continuation of approval under Section 80G(5)(vi).
Remedy Sought
Appellant sought to set aside the order of ITAT and allow the appeal, thereby seeking continuation of approval under Section 80G(5)(vi).
Filing Reason
The Commissioner of Income Tax rejected the assessee's application for continuation of approval under Section 80G(5)(vi), and the ITAT affirmed the rejection.
Previous Decisions
Commissioner of Income Tax rejected application for continuation of approval; ITAT affirmed the rejection.
Issues
Whether the assessee is entitled to continuation of approval under Section 80G(5)(vi) of the Income Tax Act, 1961, when the application for renewal was filed before the expiry of the earlier approval period.
Submissions/Arguments
Appellant argued that the application for renewal was filed on 06.03.2008, which was within the period of approval that expired on 31.03.2008, and thus the rejection was erroneous.
Respondent contended that the approval had lapsed and the rejection was justified.
Ratio Decidendi
The approval under Section 80G(5)(vi) lapses upon expiry of the specified period, and a fresh application is required for renewal. The court found no substantial question of law in the appeal.
Judgment Excerpts
Assessee has filed this appeal challenging the correctness and legality of the order passed by Income Tax Appellate Tribunal, Bangalore Bench ‘B’, Bangalore dated 29.05.2009 in ITA No.4/Bang/2009 whereunder appeal filed by the assessee questioning the order of Commissioner for Income Tax, Mangalore who had rejected the assessee’s application filed under Section 80G of the Income Tax Act, 1961 came to be affirmed.
We have heard the learned counsel appearing for the parties and perused the records. In our considered view, no substantial question of law arises for consideration in this appeal. Accordingly, appeal stands dismissed.
Procedural History
Assessee applied for continuation of approval under Section 80G(5)(vi) on 06.03.2008. Commissioner rejected the application. Assessee appealed to ITAT, which affirmed the rejection on 29.05.2009. Assessee then filed this appeal under Section 260A before the High Court.
Acts & Sections
- Income Tax Act, 1961: Section 80G, Section 80G(5)(vi), Section 12A, Section 260A
- Karnataka Societies Registration Act, 1960:
