GUJARATI SAMAJ UJJAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This petition although captioned as petition under Article 226, in fact it is petition under Article 227 of the Constitution of India. It is directed against the order dated 25/28.8.2006 passed by the Commissioner of Income Tax, Ujjain. By the order impugned, Commissioner of Income Tax, Ujjain has rejected the petitioner's application dated 17.1.2006 for grant of exemption u/s. 80G(5) (vi) of the Income Tax Act, 1961 (hereinafter referred to as "the Act" for short).

(2.) The petitioner, Gujrati Samaj, Ujjain is a registered trust u/s. 12A of the Act. The objects of the petitioner trust admittedly are as under:- <IMG>JUDGEMENT_1690_ILR(MP)_2008Image1.jpg</IMG> <IMG>JUDGEMENT_1690_ILR(MP)_2008Image2.jpg</IMG>

(3.) Learned counsel for the petitioner submitted that petitioner trust has been registered way back in the year 1974 by order dated 28.2.1974 and now, the Commissioner, Income Tax, Ujjain cannot sit in appeal over the orders passed by his predecessors. It is also submitted that if any donation is made by a person, he would not be entitled for the deduction under the provisions of the Act for want of exemption u/s. 80G of the Act. Learned counsel for the petitioner placed reliance on a Single Bench decision of this Court reported in 256 ITR (2002) 277 in the case of M. P. Madhyam vs. Commissioner of Income Tax & others in support of his submission that once registration is granted, then it is binding on the Income Tax authorities.