2008 (11) TMI 348

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..... n preferred against the order dated January 27, 2005 (annexure 7) as passed by the Commissioner of Income-tax-I, Jodhpur whereby an application moved by the petitioner-trust for renewal of exemption under section 80G of the Income-tax Act, 1961 ("the Act"), has been rejected essentially on the ground that the petitioner-trust made a donation of Rs.71,000 to one Oswal Chhatrawas, Jodhpur, out of it .....

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..... Assailing the order aforesaid, the learned counsel for the petitioner has contended that the learned Commissioner proceeded to reject the application in a wholly cursory manner without having regard to the facts of the case and without applying the relevant principles. Learned counsel submitted that the Commissioner proceeded on a misplaced reliance on the decision of the hon'ble Supreme Court in .....

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..... and the contributions or expenditure incurred by the trust have to be viewed in the light of such object of the trust; and that a single instance of donation of more than 5 per cent. of income for renovation of temple would not by itself disentitle a trust for renewal of exemption on the ground of violation of section 80G(5B). 4. Having regard to the facts and circumstances of this case and the .....

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..... priate to observe that mere contribution for the purpose of construction of one room in a hostel that is named Oswal Chhatrawas may not by itself be treated to be an act violating the requirements of section 80G(5B) of the Act. The other aspects particularly those relating to utilisation of the funds of the trust concerned with reference to its aims and objects do require consideration and the app .....

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..... trust deed and the position of law as explained by this court in Umaid Charitable Trust's case [2008] 307 ITR 226. 6. In the aforesaid view of the matter, this writ petition succeeds and is allowed to the extent indicated above. The impugned order dated January 27, 2005 (annexure 7) is set aside; the application as moved by the petitioner-trust for renewal of exemption stands restored for recons .....

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