- (1.) By this writ petition, the petitioners are challenging the order of the Commissioner of Income-tax, Meerut, dated March 17, 2006 (annexure 14 to this writ petition), purporting to have been passed under Section 154 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). By that order the Commissioner has cancelled the last two renewal orders dated January 2, 2002 and June 4, 2004, issued under Section 80G of the Income-tax Act, 1961, and has directed petitioner No. 1 (the assessee-trust) not to use the said renewals while accepting donations from the public and to clarify in writing that donations given to the said trust are not entitled to deduction under Section 80G.
(2.) The facts leading to the impugned order are that one Smt. Rajwati Bhatnagar (hereinafter referred to as the "settlor" of the trust), executed an unregistered trust deed dated March 15, 1991. A copy of the trust deed is enclosed as annexure 1 to this writ petition. By that document, a sum of Rs. 1,101 (rupees one thousand one hundred one only) was contributed and converted by the "settlor" into a public charitable trust described to be wholly for charitable purpose in India under the name and style of "Subharati Krishan Kumar Bhatnagar Charitable Trust". The objects mentioned in that trust deed are quoted below : "Objects: (i) To promote and work for public welfare in all its dimensions, phase and aspects, in particular, to promote physical, mental, eternal, moral and ethical development of human beings, to propagate and circulate ideas by public lectures, demonstrations, publications, research, or in other manner whatsoever. (ii) To establish, run, maintain and grant aids to hospitals, nursing homes, clinics, sanatoriums, maternity homes, dispensaries and other institutions of medical relief for general public. (iii) To help the poor patients with blood, artificial limbs, other aids, medicines, food, nutrition and resettlement. (iv) To establish, run, maintain or grant aid to the schools, colleges, pathshalas, hostels and other similar institutions imparting or facilitating education to boys and girls and also to provide facilities for the development and advancement of education and knowledge. (v) To help poor or promising students in their studies by providing books, uniforms, meals, lodging and other necessaries or facilities and to provide stipends, scholarships, grants and aids for further studies. (vi) To establish, arrange and maintain rest houses, public houses, poor houses, water huts or other public utilities for the benefit of the society. (vii) To grant relief to the poor and distressed persons during and after natural calamities like famine, earthquakes, floods, draughts, etc. (viii) To help indigent, poor and helpless families, individuals and persons. (ix) To start community, recreational, health, devotional and other centres of general public utility and also to arrange and manage medical camps for any kind of diseases, for the benefit of the public. (x) To assist in or to provide and create job or employment opportunities for the poor, handicapped and females. (xi) To formulate plans, schemes and programme for rural development and execute the same for the welfare of the rural community. (xii) To formulate and carry out schemes and programmes for the benefit of the society especially for the benefit of the poor and weaker sections of the society and to take up other public charitable objects.
(3.) With the aforesaid objects, this trust deed was got registered under Section 12A of the Income-tax Act, vide registration certificate dated November 15, 1991. After obtaining the registration as above, the assessee applied for issue of a certificate for exemption under Section 80G of the Act, which was granted to the assessee for the first time on August 25, 1994, for the period April 1, 1993 to March 31, 1997. The exemption was renewed on December 24, 1997, for the period April 1, 1997 to March 31, 2000; it was renewed again on December 20, 2000, for the period April 1, 2000 to March 31, 2001; it was renewed again on January 2, 2002, for the period April 1, 2001 to March 31, 2004, and the last renewal is dated June 4, 2004 for the period April 1, 2004 to March 31, 2007. These last two renewals dated January 2, 2002 and June 4, 2004, have been cancelled by the impugned order dated March 17, 2006.;