9911796707
TMI Blog2014 (3) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. Sarladevi Sarabhai Trust [1988 (3) TMI 53 - GUJARAT High Court] - the assessee-trust as a matter of regular course made donations out of its corpus funds, thus dissipating them, while the same are required to be retained and/or capitalized, forming part of the capital structure of the recipient - The activities of the assessee would qualify for exemption only subject to application u/s. 11(1)(a) – thus, the competent authority is directed to grant approval u/s. 80G(5)(vi) – Decided in favour of Assessee. - I.T.A. No. 6192/Mum/2012 - - - Dated:- 21-2-2014 - Shri B. R. Mittal, JM And Shri Sanjay Arora, AM,JJ. For the Appellant : Shri A. H. Dalal For the Respondent : Shri Girija Dayal ORDER Per Sanjay Arora, AM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .e., for which it is formed. He, accordingly, denied approval u/s. 80G(5). Aggrieved, the assessee is in appeal. 3. We have heard the parties, and perused the material on record. 3.1 The assessee before us placed reliance on a number of decisions, viz. CIT vs. Sarladevi Sarabhai Trust [1988] 172 ITR 698 (Guj); CIT vs. Trustees of Jadi Trust [1982] 133 ITR 494 (Bom); CIT vs. Hindustan Charity Trust [1983] 139 ITR 913 (Cal); N.N. Desai Charitable Trust vs. CIT [2000] 246 ITR 452 (Guj); ITO vs. Abhilashkumari Public Charitable Trust [1987] 28 TTJ (Del) 523, to the effect that donation to other charitable (or religious) trust would amount to application of income for charitable (or religious) purposes, entitled to exemption u/s. 11(1)(a), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t satisfying the condition/s of section 80G(5). As far as we are able to see, the assessee-trust apparently satisfies the conditions of 80G(5) [(i) to (v)]; there being no charge to contrary. That its income is liable to be exempt u/s. 11, which is the condition of section 80G(5)(i), is apparent from section 11(1)(d), which excludes corpus donations from the ambit of total income, as well as the case law holding that donation to other trusts/institutions amounts to application of income u/s. 11(1)(a). As we infer, the competent authority is not satisfied with the genuineness of the activities of the assessee-trust inasmuch as donations to other trusts/institutions could not be its principal or main charitable object, i.e., for which the tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the foregoing, regarded the satisfaction qua the genuineness of the activities of the applicant fund/institution as an independent condition, even as it is open to be argued that the same, i.e., the said satisfaction, is not a separate or independent condition, and has to lead to a finding as to the non-fulfillment of any of the conditions specified in clauses (i) to (v) of section 80G(5) inasmuch as an order rejecting the application u/s. 80G(5)(vi) has to record a finding to that effect, along with the reasons for the same (r. 11AA(5)). We did so proceeding conservatively, as no separate argument/s on this aspect matter was assumed before us, which though could have counter argument/s as well. Further, we are not, we may clarify, obliv ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
