2010 (10) TMI 1091 - AT - Income Tax

Summary

Issues involved: Appeal against denial of approval u/s 80G of the Income Tax Act by the Director of Income Tax (Exemption), Mumbai.

Summary:
The appeal was filed by the assessee against the order of the Director of Income Tax (Exemption), Mumbai denying approval u/s 80G of the Act. The assessee contended that all conditions for approval were met and approval should have been granted. The Director noted that the trust was approved u/s 12A but had not carried out charitable activities for the last three years, leading to the denial of the certificate u/s 80G.

The assessee, represented by counsel, argued that despite not receiving donations in the last three years, it had previously constructed a School and Hospital, subsequently handed over to the Government, demonstrating charitable activities. The Tribunal found merit in the assessee's submissions, setting aside the Director's order and remitting the matter for reconsideration. It was emphasized that if the School and Hospital were indeed constructed and handed over to the Government, approval u/s 80G should be granted.

Ultimately, the appeal was allowed for statistical purposes, with the Tribunal directing a reconsideration of the issue by the Director of Income Tax (Exemption), Mumbai. The order was pronounced on October 8, 2010.