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TMI Blog2013 (12) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the assessee on 31.1.2006 for the period starting from 1.4.2005 to 31.3.2008. The assessee had applied for renewal of exemption under section 80G on 14.2.2012. The Commissioner of Income Tax sought report from the lower authority to consider the application of the assessee for grant of relief under section 80G. The CIT., Trichy after perusing the statement of accounts annexed along with Form 10G, rejected the application for grant of renewal of exemption under section 80G. Aggrieved against the order of the CIT-I, the assessee has come in appeal before the Tribunal. 3. Shri S.Sridhar appearing on behalf of the assessee submitted that the CIT has travelled beyond his jurisdiction under section 80G of the Act. He contended that regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee made an alternate prayer that apart from the merits of the case, the CIT has not afforded sufficient opportunity to the assessee to explain the income and expenditure account placed before him. He contended that a perusal of records would show that only a single day was granted to the assessee to put forth his case and explain the books of account which is not sufficient. He submitted that fair opportunity has not been granted to the assessee to put forth his case. 5. On the other hand, Shri Shaji P.Jacob appearing on behalf of the Revenue submitted that the order of the CIT is a well-reasoned and detailed order. The CIT has specifically asked about the charitable activity being carried out by the assessee trust. The assessee neither ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He strongly supported the order of the CIT. 7. We have heard the submissions made by both the parties and have gone through the order of the CIT and judgements/orders referred to by both the sides. A perusal of the order of the CIT-I shows that a report of the lower authority has been obtained before passing of the said order. The relevant extract of the order of the CIT is reproduced herein below:- "........ 2.1 Perusal of the statement of accounts filed along with the application in Form No.10G reveals the following: The trust runs Working Women's Hostel, Morning Star ITI, M.R.School, Home purely commercial basis. It is seen from the Income and Expenditure statement for the years ending 31.3.2009, 31.03.2010 & 31.03.2011 that under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plus out of running a school, hostel etc. for being utilized towards charity which has not been done at all in any of the two financial years. This inference is evident from the fact that no expenditure towards any charitable activity as per the trust deed has been debited to the P & L account or I/E account. Therefore, the basic question i.e "where is charity?" has remained unanswered in the three financial years. In absence of any charitable activity, the income of the trust will not be exempt u/s.11(1)(a) of the I.T. Act which presupposes that at least 85% of the income of the trust should be applied for charitable purposes in India during the relevant previous year. This statutory condition has, therefore, not been met for any of these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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