Pratham Books, Bangalore v. DIT(Exemptions), Bangalore

ITA 588/BANG/2009 | misc
Pronouncement Date: 29-01-2010 | Result: Allowed

Appeal Details

RSA Number 58821114 RSA 2009
Bench Bangalore
Appeal Number ITA 588/BANG/2009
Duration Of Justice 7 month(s) 20 day(s)
Appellant Pratham Books, Bangalore
Respondent DIT(Exemptions), Bangalore
Appeal Type Income Tax Appeal
Pronouncement Date 29-01-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 29-01-2010
Date Of Final Hearing 05-01-2010
Next Hearing Date 05-01-2010
Assessment Year misc
Appeal Filed On 09-06-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE A BENCH BANGALORE BEFORE SHRI SHAILENDRA KUMAR YADAV JM AND SHRI A. MOHAN ALANKAMONY AM ITA NO. 588(BANG.)/2009 (ASSESSMENT YEAR : N.A) M/S PRATHAM BOOKS NO.930 4 TH CROSS I MAIN MICO LAYOUT 2 ND STAGE BANGALORE-560 016. APPEL LANT VS THE DIRECTOR OF INCOME-TAX(EXE.) BANGALORE. RESPONDENT APPELLANT BY : SHRI D. DEVARAJ REVENUE BY : SHRI JASON P BOAZ O R D E R PER SHAILENDRA KUMAR YADAV JM: THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE REJECTION OF RENEWAL OF RECOGNITION U/S 80G. THE ASSESSEE IS A TRUST FORMED ON 01-01-2004 FILED AN APPLICATION FOR RENEWAL OF RECO GNITION U/S 80G ON 31-07-2008. SUBSEQUENTLY IN RESPONSE TO THE CALL MEMO ISSUED THE ASSESSEE FILED THE DETAILS VIDE ITS LETTER DATED 19 -12-2008. ON VERIFICATION THE DIT(EXE.) OBSERVED THAT THE AIMS AND OBJECTIVES OF THE TRUST ARE AS UNDER; TO ATTAIN THE AIMS AND OBJECTIVES OF THE TRUST THAT IS TO PRIDE HIGH QUALITY LOW COST BOOKS FOR T HE ITA NO.588(B)/09 2 CHILDREN WHO HAVE NO ACCESS TO THE UTTER JOY OF A GOOD READ AND TO DISTRIBUTE/SELL TO THEM WE HAVE BEEN PUBLISHING OUR OWN TITLES. WE ARE UTILIZING TH E DONATIONS RECEIVED FROM THE DONORS FOR THE PUBLICATION OF TITLES. THE DEVELOPMENT COST OF ONE TITLE INCLUD ES THE EXPENSES OF AUTHOR PAYMENT ILLUSTRATOR PAYMENT REVIEWER PAYMENT EDITOR PAYMENT ROOF READER PAYMENT TRANSLATOR PAYMENT DTP EXPENSES PRINTING OF BOOKS (LABOUR CHARGES) PAPER CHARGES AND TRANSPORTATION CHARGES OF BOOKS. 3. ACCORDING TO DIT(EXE.) THE AFORESAID ACTIVITY W OULD NOT QUALIFY UNDER THE EDUCATION LIMB OF THE DEFINITION OF CHA RITABLE PURPOSE IN SEC.2(15) OF THE IT ACT IN VIEW OF THE APEX COURT DECISION IN 101 ITR 234 IT WOULD RATHER FALL UNDER THE GENERAL PUBLIC UTILITY. ACCORDING TO DIT(EX.) THE ASSESSEES ACTIVITY INVOLVE IN CARRYI NG ON OF AN ACTIVITY IN THE NATURE OF TRADE/COMMERCE/BUSINESS WHEREIN BOOKS ARE SOLD FOR CONSIDERATION WHICH IS NOT A CHARITABLE PURPOSE IN VIEW OF PROVISO TO SEC.2(15) OF THE IT ACT WHICH IS REPRODUCED AS UNDE R; CHARITABLE PURPOSE INCLUDES RELIEF OF THE POOR EDUCATION MEDICAL RELIEF AND THE ADVANCEMENT OF A NY OTHER OBJECT OF GENERAL PUBLIC UTILITY: PROVIDED T HAT THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC U TILITY SHALL NOT BE A CHARITABLE PURPOSE IF IT INVOLVES T HE CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE COMMERCE BUSINESS OR ANY ACTIVITY OF RENDERING ANY ITA NO.588(B)/09 3 SERVICE IN RELATION TO ANY TRADE COMMERCE OR BUSIN ESS FOR A CESS OR FEE ANY OTHER CONSIDERATION IRRESPEC TIVE OF THE NATURE OF USE OR APPLICATION OR RETENTION OF THE INCOME FROM SUCH ACTIVITY. THE DIT(EXE.) REJECTED THE RENEWAL OF RECOGNITION U/S 80G. 4. IN APPEAL BEFORE US IT WAS CONTENDED THAT REJEC TION IN THE APPLICATION FILED U/S 80G IS CONTRARY TO THE FACT A ND LAW. ACCORDING TO LEARNED AR THE DIT(EX.)OUGHT TO HAVE APPRECIATED TH E FACT THAT THE ASSESSEE CARRYING ON CHARITABLE ACTIVITY IN HELPING THE NEEDY PERSONS BY SUPPLYING LOW COST BOOKS. ACCORDING TO LEARNED AR THE ASSESSEE IS ABLE TO KEEP THE COST DOWN FROM THE DONATIONS RECEIVED. DONORS WILL DONATE ONLY WHEN THE GET THE BENEFIT F IT EXEMPTION U/S 80 G. BY DEPRIVING THE ASSESSEE 80G EXEMPTION CHILDREN MORE SPECIFICALLY UNDER PRIVILEGED CHILDREN OF THE COUNTRY ARE DEPRIVED OF HIGH QUALIT Y BOOKS AT LOW COST WITHOUT SUBSIDY IN THE FORM OF DONATIONS. DONORS WI LL NOT BE DONATING UNLESS THEY GET 80G EXEMPTION. THE LEARNED AR ALSO RELIED ON THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE O F ASSAM STATE TEXT BOOK PRODUCTION AND PUBLICATION CORPORATION LTD. VS CIT REPORTED IN (2009) 319 ITR 317(SC) WHEREIN ; THE ASSESSEE WAS INITIALLY CONSTITUTED AS A TEXT BOOK COMMITTEE ATTACHED TO THE DIRECTOR OF PUBLIC INSTRUCTION IN ASSAM. AFTER SOME CHANGES THEREAFTE R IT ITA NO.588(B)/09 4 WAS CONVERTED INTO A CORPORATION IN 1972. THE CORPORATION HAD A PAID UP SHARE CAPITAL OF 10 000 SHARES OF WHICH 9 998 SHARES WERE HELD BY THE GOVER NOR OF ASSAM AND ONE EACH BY THE FINANCIAL COMMISSIONER AND THE CHAIRMAN OF THE BOARD OF SECONDARY EDUCATION. IT WAS THUS A GOVERNMENT COMPANY U/S 617 OF THE COMPANIES ACT 1956 AND ITS MAIN OBJECT WAS TO DO RESEARCH PRINTING AND PUBLISHING OF TEXT BOOKS FOR SCHOOL STUDENTS AS PER THE NORMS PRESCRIBED AND APPROVED BY THE EDUCATION DEPARTMENT OF THE STATE. THE QUESTION WAS WHETHER IT COULD BE TERMED AN EDUCATIONAL INSTITUTION IN TERMS OF SECTION 10(22 ) OF THE IT ACT 1961 AND CLAIM EXEMPTION THERE UNDER. ACCORDING TO THE ASSESSING OFFICER THE EXEMPTION U /S 10(22) WAS NOT AVAILABLE TO THE ASSESSEE AS DURING THE RELEVANT YEARS IT HAD INCOME EXCLUSIVELY FROM PUBLICATION AND SELLING OF TEXT BOOKS TO THE STUDEN TS. THE APPELLATE TRIBUNAL BY A MAJORITY HELD THAT THE ASSESSEE WAS ENTITLED TO THE BENEFIT OF THE EXEMPTI ON. HOWEVER THE HIGH COURT ON APPEAL HELD THAT IT WAS NOT SO EXEMPT PARTICULARLY SINCE THE ASSESSEE DID NOT SOLELY IMPART EDUCATION AND ITS INCOME DURING THE RELEVANT YEARS WAS ONLY FROM PUBLISHING AND SALE OF TEXT BOO KS. ON APPEAL TO THE SUPREME COURT: HELD REVERSING THE DECISION OF THE HIGH COURT TH AT THE ASSESSEE WAS ENTITLED TO THE EXEMPTION U/S 10(2 2). THE ASSESSEE WAS A GOVERNMENT COMPANY AND IT WAS CONTROLLED BY THE STATE OF ASSAM; THE CENTRAL BOARD OF DIRECT TAXES HAD GRANTED SIMILAR EXEMPTION BY LETTE R DATED AUGUST 19 1975 TO THE TAMIL NADU TEXT BOOKS ITA NO.588(B)/09 5 SOCIETY WHICH PERFORMED ACTIVITIES SIMILAR TO THOSE OF THE ASSESSEE; AND THE CENTRAL GOVERNMENT HAD BY LET TER DATED JULY 9 1973 STATED THAT ALL STATE CONTROLLED EDUCATIONAL COMMITTEE/BOARDS HAD BEEN CONSTITUTED T O IMPLEMENT THE EDUCATIONAL POLICY OF THE STATES AND CONSEQUENTLY THEY SHOULD BE TREATED AS EDUCATIONAL INSTITUTIONS (MATTER REMANDED). 5. THE LEARNED AR DREW OUR ATTENTION REGARDING THE ACTIVITIES CARRIED ON BY THE TRUST. IN THIS REGARD THE ASSESS EE HAS PLACED NOTES ON THE ACTIVITY OF THE TRUST AT PAGE-D1 TO D-6. AC CORDING TO WHICH THE ASSESSEE TRUST IS NOT FOR PROFIT TRUST THAT SEEKS TO PUBLISH HIGH QUALITY BOOKS FOR CHILDREN AT AN AFFORDABLE COST IN MULTIPLE INDIAN LANGUAGES. THE ASSESSEE IS TRYING TO CREATE A SHIF T IN THE PARADIGM FOR PUBLISHING CHILDRENS BOOKS IN INDIA. THE LOW C OST MODEL PROVES THAT CHILDRENS LITERATURE CAN BE ATTRACTIVE AND AF FORDABLE AND THEREFORE MORE ACCESSIBLE. ACCORDING TO THE SAID N OTE OBJECTS OF THE ASSESSEE HAS BEEN SUMMARIZED AT PAGE-D2. PROVIDE CHILDREN WITH ACCESS TO LOW COST HIGH QUA LITY BOOKS PUBLISH BOOKS IN MULTIPLE INDIAN LANGUAGES PROVIDE PUBLISHERS WITH A PLATFORM TO CREATE AFFORD ABLE READING MATERIAL FOR CHILDREN. BRING AUTHORS ILLUSTRATORS AND PRODUCERS OF BOOKS TOGETHER TO BUILD A READING COUNTRY URGE THE CORPORATE SECTOR TO ACTIVELY PARTICIPATE I N THIS PROCESS ITA NO.588(B)/09 6 6. ACCORDING TO LEARNED AR OVER 8.00 LAKH COPIES WE RE SHIPPED OUT ACROSS THE NATION TO PRATHAMS LIBRARIES AND OT HER CENTRES. OUR ATTENTION WAS ALSO DRAWN TOWARDS THE ACTIVITIES OF ASSESSEE TO A LETTER DATED 7-11-2008 WHICH READS AS UNDER; TO PRATHAM BOOKS NEW DELHI EKLAVYA BHOPAL SCHOLASTIC INDIA NEW DELHI BODHI PRAKASHAN JAIPUR NATIONAL BOOK TRUST NEW DELHI CHILDRENS BOOK TRUST NEW DELHI SUB: ISSUE OF INDENT LETTER FOR PURCHASE F BOOKS U NDER RIP DEAR SIR/MADAM IN CONNECTION WITH THE ABOVE MENTIONED SUBJECT THE BIHAR EDUCATION PROJECT COUNCIL UNDER THE SSA IS CONDUCTI NG THE READING IMPROVEMENT PROGRAMME. AN IMPORTANT ASPECT OF THIS PROGRAMME IS TO DEVELOP THE CAPACITIES OF CHILDREN STUDYING IN CLASSES 1 AND 2 READ WITH COMPREHENSION. SOME BOOK S HAVE BEEN CHOSEN FOR THIS PURPOSE UNDER THE GUIDANCE OF NCERT (LIST ATTACHED) AS PER THE NORMS OF THE SARV SHIKSHA ABHIYAN THE BO OKS ARE TO BE PURCHASED BY THE SCHOOL EDUCATION COMMITT EES. THE CHOSEN BOOKS ARE FROM YOUR PUBLISHING HOUSES. ON 24-10-2008 THERE WERE DETAILED DISCUSSIONS WITH THE STATE PROJECT DIRECTOR ON HOW THE BOOKS WILL BE MAD E AVAILABLE TO THE SCHOOL EDUCATION COMMITTEES IN THE DISTRICTS AND ALL MODALITIES WERE DECIDED AND YOU WERE INFORMED OF TH ESE DETAILS VIA THE MINUTES. AS PER POINT 5(3) OF THE MINUTES A LETTER OF ITA NO.588(B)/09 7 INDENT WAS TO BE ISSUE FROM THE STATE OFFICE. THIS LETTER IS BEING ISSUED IN THAT REGARD. BIHAR STATE HAS ABOUT 70 000 PRIMARY SCHOOLS WHERE 589 87 125 STUDENTS ARE STUDYING IN CLASSES 1 AND 2 FOR WHOM ABOUT 2 02 540 SETS WILL BE REQUIRED. A DETAILED CO UNT HAS BEEN MADE IN THIS REGARD WHICH IS ENCLOSED AS ANNEXURE A WITH THIS LETTER. IT IS BEING REITERATED THAT THE BOOKS WILL BE PURCHASED ONLY BY THE SCHOOL EDUCATION COMMITTEES AND THE PAY MENT WILL BE MADE BY THEM AT THE POINT OF PURCHASE. IN EVERY DISTRICT AT A SCHOOL OR ANOTHER APPROPRIATE PLACE A STALL WILL B E PUT UP BY YOU. DETAILED DIRECTIVES TO EACH DISTRICT OFFICE H AVE BEEN SENT FROM THIS OFFICE UNDER LETTER NO.5645 DATED 29-10-2 008 (ANNEXURE B) AND A COPY HAS BEEN EMAILED TO YOU. I T HAS BEEN ESTIMATED THAT A TOTAL OF 2 02 540/- BOOKS WILL BE NEEDED IN THE WHOLE OF BIHAR AND THESE WILL BE SOLD THROUGH THE S TALLS PUT UP BY YOU. IN THE DELIBERATIONS ON 24-10-2008 IT WAS DECIDED THAT A REVIEW MEETING WILL BE HELD A WEEK AFTER MELAS AR E STARTED WHERE THE FUTURE STRATEGY WILL BE DECIDED BASED ON THE EXPERIENCES OF THE FIRST WEEK. IN THE LIGHT OF THIS IT SEEMS NECESSARY THAT THE BOOKS ARE PRINTED IN PHASES. IN THE FIRST PHASE PRINTING 50% OF THE ESTIMATED NUMBER WILL BE BEST YOU ARE REQUESTED TO TAKE NECESSARY ACTION AND PLAY AN IMPORTANT ROLE TO MAKE BOOKS AVAILABLE TO THE CHILD REN OF CLASSES 1 AND 2 IN THE LIGHT OF THE ABOVE FACTS AND NEEDS. YOURS FAITHFULLY S/D- (RAJESH BHUSHAN) SPD ITA NO.588(B)/09 8 7. ATTENTION WAS ALSO DRAWN TO THE FACT THAT THE A SSESSEE IS ENGAGED IN EDUCATION ACTIVITY RUNNING INTO LOSSES. LEARNED AR RELIED ON THE DECISION IN THE CASE OF THE OXFORD ACADEMY F OR CAREER DEVELOPMENT (2009)(315 ITR 382) WHEREIN THE ASSESSE E WAS PREPARING STUDENTS BY PROVIDING COACHING/GUIDELINES TO GET AD MISSIONS IN PROFESSIONAL INSTITUTIONS TO PURSUE THEIR STUDIES. THE SENSE IN WHICH THE WORD EDUCATION HAS BEEN USED U/S 2(15) IS THE SYSTEMATIC INSTRUCTION SCHOOLING OR TRAINING GIVEN TO THE YOU NG IN PREPARATION FOR THE WORK OF LIFE. SIMILARLY EXTENDING FINANCIAL AS SISTANCE/SCHOLARSHIP ETC. TO STUDENTS FOR THEIR EDUCATIONAL PURPOSE WOU LD SQUARELY AND FAIRLY FALL AS PER THE RATIO LAID DOWN IN THE CASE OF CIT VS SARASWATH POOR STUDENTS FUND(1984) REPORTED IN 150 ITR 142(KA RN.)WHEREIN THE ASSESSEE IS ENGAGED IN THE SCHOOL EDUCATION ACTIVIT IES WHICH FALL UNDER THE CHARITABLE PURPOSES. LEARNED AR ALSO DREW OUR ATTENTION TO THE AIMS AND OBJECTS OF THE ASSESSEE TRUST. IN THIS BA CKGROUND IT WAS SUBMITTED THAT THE ASSESSEE IS ENGAGED IN THE EDUCA TIONAL ACTIVITY BY PROVIDING AFFORDABLE PUBLICATION OF BOOKS IN DIFFER ENCE PART OF THE NATION. SO ENTITLE FOR RENEWAL OF RECOGNITION U/S 80G. ON THE OTHER HAND LEARNED DR SUPPORTED THE ORDER OF THE DIT(E). ACCORDING TO LEARNED DR THE ACTIVITY CARRIED OUT BY THE ASSESSEE ARE NOT FOR CHARITABLE PURPOSE THEN IN TERMS OF SEC.80G(5). L EARNED DR STATED THAT THE ACTIVITY OF THE ASSESSEE IS NOT ATTRACTED U/S 2(15) OF THE IT ITA NO.588(B)/09 9 ACT. ACCORDINGLY THE DIT(E) RIGHTLY REJECTED THE R ENEWAL OF RECOGNITION U/S 80G WHICH SHOULD BE UPHELD. 8. AFTER GOING THROUGH THE RIVAL SUBMISSION AND MA TERIAL ON RECORD WE FIND THAT THE ASSESSEE BEING A CHARITABL E TRUST HAD APPLIED FOR RENEWAL OF RECOGNITION U/S 80G WHICH WAS REJECT ED BY THE DIT(A) HENCE THIS APPEAL. THE ASSESSEE HAS FORMED A TRUST ON 01-01-2004 AND WAS CARRYING ON THE ACTIVITY OF PRINTING AND SU PPLYING OF BOOKS TO STUDENTS TO IMPROVE THE KNOWLEDGE AND OTHER ACTIVIT Y MERELY OUT OF DONATION. ACCORDING TO THE TRUST DEED THE MAIN OBJ ECT OF THE TRUST IS THAT OF SUPPLYING LOW COST BOOKS FOR THE NEEDY STUD ENTS. THUS THE ASSESSEE WAS NOT CARRYING ON THE ACTIVITY OF EARNIN G PROFIT BUT TO FACILITATE POOR STUDENTS IN THEIR PRIMARY EDUCATION . THE RATIO OF HONBLE SUPREME COURT IN THE CASE OF SOLE TRUSTEE LOKA SHIKSHANA TRUST VS CIT REPORTED IN 101 ITR 234(SC) HELD AS UNDER: WE ARE IN AGREEMENT WITH THE VIEW EXPRESSED IN TRIBUNE CASE TO THE TENT THAT WE THINK THAT A TRUST SUCH AS THE ONE CONSIDERED THERE DOES NOT JUST LIKE THE TRUST BEFORE US FALL WITHIN THE CATEGORY OF EDUCATION AS SUCH MENTIONED IN THE STATUTORY ELUCIDATION OF CHARITY WHICH WAS REPEATED THE 1961 ACT WITH AN ADDED QUALIFICATION OF THE LAST AND WIDEST CATEGORY. ALTHOUGH THE TERM EDUCATION AS USED IN SECTION 2(15) OF THE ACT SEEMS WIDER AND MORE COMPREHENSIVE THAN EDUCATION THROUGH EDUCATIONAL INSTITUTIONS SUCH AS UNIVERSITIES HOS E ITA NO.588(B)/09 10 INCOME IS GIVEN AN EXEMPTION FROM INCOME-TAX SEPARATELY UNDER SECTION 10(22) PROVIDED THE EDUCATIONAL INSTITUTION CONCERNED DOES NOT EXIST FO R FOR PURPOSES OF PROFIT YET IT SEEMS TO ME THAT T HE EDUCATIONAL EFFECTS OF A NEWSPAPER OR PUBLISHING BUSINESS ARE ONLY INDIRECT PROBLEMATICAL AND QUIT E INCIDENTAL SO THAT WITHOUT IMPOSING ANY CONDITION OR QUALIFICATION UPON THE NATURE OF INFORMATION TO BE DISSEMINATED OR MATERIAL TO BE PUBLISHED THE MERE PUBLICATION OF NEWS OR VIEWS CANNOT BE SAID TO SER VE A PURELY OR EVEN A PREDOMINANTLY EDUCATIONAL PURPOSE IN ITS ORDINARY AND USUAL SENSE. 9. IN THIS APPEAL THE ISSUE WAS WITH REGARDS TO PUBLICATION OF NEWS OR VIEWS BUT IN CASE BEFORE US THE ISSUE IS W ITH REGARDS TO PUBLISHING A LOW COST BOOKS AND MAKING THEM AVAILAB LE TO POOR STUDENTS ALL OVER THE COUNTRY. WE FIND THAT THE HO NBLE SUPREME COURT IN THE CASE OF ASSAM STATE TEXT BOOK PRODUCT ION AND PUBLICATION CORPORATION LTD. (SUPRA) HAS HELD THA T THE RESEARCH PRINTING PUBLISHING OF TEXT BOOKS FOR SCHOOL STUDE NTS CONFORMING TO NORMS PRESCRIBED BY EDUCATION DEPARTMENT OF STATE W AS EXEMPT FROM INCOME-TAX. THERE IS NOTHING ON RECORD THAT THE AS SESSEE IS EARNING PROFIT OUT OF THE ABOVE SAID ACTIVITY. IT ONLY HELP S THE ASSESSEE TO RUN THE SOCIAL ACTIVITY AS MENTIONED ABOVE. IN THE ABS ENCE OF RENEWAL OF RECOGNITION THE ASSESSEE WILL NOT HAVE DONATIONS FR OM CONCERNED PERSONS AND THE ASSESSEE WILL HAVE DIFFICULTY TO RU N THE SOCIAL ACTIVITY ITA NO.588(B)/09 11 FOR POOR STUDENTS. ACCORDING TO THE DECISION OF TH E HONBLE KARNATAKA HIGH COURT IN CASE OF CIT VS SARASWATH POOR STUDEN TS FUND(1984) 150 ITR 142(KARN.) WHEREIN THE ASSESSEE WAS PREPARI NG STUDENTS BY PROVIDING COACHING/GUIDELINES TO GET ADMISSIONS IN PROFESSIONAL INSTITUTIONS TO PURSUE THEIR STUDY. THE SENSE IN WHICH THE WORD EDUCATION HAS BEEN USED IN SECTION 2(15) OF THE A CT IS THE SYSTEMATIC INSTRUCTION SCHOOLING OR TRAINING GIVEN TO THE YOU NG IN PREPARATION FOR THE WORK OF LIFE. SIMILARLY EXTENDING FINANCIAL AS SISTANCE/SCHOLARSHIP FOR THEIR EDUCATIONAL PURPOSE WOULD SQUARELY AND FA IRLY FALL WITHIN THE CANNOTATION OF EDUCATION AND IT CANNOT BE INFERRE D THAT THE ASSESSEE IS ENGAGED IN EDUCATIONAL ACTIVITIES WHICH FALL UND ER THE CHARITABLE PURPOSE. EVEN THE DETAILS OF INCOME AND EXPENDITUR E ACCOUNT AS PLACED BY THE LEARNED AR IN THE FORM OF PAPER BOOK AT PAGE F1 & F2 REVEALS THAT THE ASSESSEE IS NOT ENGAGED IN THE BUS INESS ACTIVITY AT ALL. UNDER THE FACTS AND CIRCUMSTANCES THE ASSESSEE IS ENTITLED FOR RENEWAL OF REGISTRATION U/S 80G OF THE IT ACT. TH E DIT(E) IS DIRECTED ACCORDINGLY. 10. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE (A. MOHAN ALANKAMONY) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE: BANGALORE DATED: AM* ITA NO.588(B)/09 12 COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3. CIT(A) 4. CIT 5. DR 6. GF(BLORE) 7. GF(DELHI) BY ORDER AR ITAT BANGALORE FIT FOR PUBLICATION (A. MOHAN ALANKAMONY) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDI CIAL MEMBER