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TMI Blog2015 (10) TMI 1377X X X X Extracts X X X X X X X X Extracts X X X X ..... able purpose is evident from the fact that it is registered u/s 12A of the Act but, which continues till date. So far as fulfilment of conditions prescribed under clauses (i) to (v) of section 80G(5) is concerned, there is neither any allegation nor any material brought on record to show that assessee has not fulfilled those conditions. That being the case, assessee is entitled for approval u/s 80G(5) of the Act. The reasons basing on which the DIT (E) has denied approval to the assessee are extraneous and beyond the scope of statutory provisions as contained u/s 80G(5) of the Act. Another important aspect which merits consideration is the assessee was granted approval u/s 80G(5)(vi) till 31-3-2003. Therefore, when there is no chang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (vi) of the Act. In course of proceedings initiated in connection with application filed by the assessee-trust, the DIT (E) called for various information from the assessee apart from books of accounts and statement of accounts. The DIT (E) also issued a questionnaire seeking assessee's reply on the queries raised therein. The assessee trust submitted informations called for and also produced its books of accounts and financial statements. In response to the query raised by the DIT (E) with regard to the earlier order passed by his predecessor rejecting the application seeking approval u/s 80G(5)(vi), the assessee submitted a detailed reply contesting the grounds on which the approval was rejected. The DIT (E) however not being convince ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to view the same. Therefore, it cannot be said that the art objects are not for the purpose of viewing by the general public. In support of such contention, the learned AR relied upon various correspondences made with different authorities. Refuting the allegation of the DIT (E) that the assessee was unable to give details of the art objects, the learned AR submitted before us a catalogue of art objects containing the details. It was thus contended by the learned AR that the assessee having fulfilled all the conditions of section 80G(5) of the Act, it is eligible for grant of approval. 4. The learned DR, on the other hand, supporting the order of the DIT (E) submitted that though one of the main objects of the assessee trust is to keep a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if- (a) the institution or fund maintains separate books of account in respect of such business; (b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and (c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has not established a museum for art objects as per the object of the trust deed. (iii) The art objects are not available for view of the general public. Due to the aforesaid reason, the DIT (E) came to the conclusion that the assessee trust has not carried on activity in accordance with the objects contained in the trust deed, hence it is not eligible for approval u/s 80G(5)(vi) of the Act. A plain reading of section 80G(5), extracted hereinabove would make it clear that an institution or fund would be eligible for approval firstly if it is established in India for charitable purpose and secondly if it fulfils the conditions prescribed under clause (i) to (v) of section 80G(5). So far as the first condition i.e., 'establis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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