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TMI Blog2016 (3) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... nd of activity by the trust for the development of the society as well as the Nation. For the said reasons the ‘Tribunal’ allowed the appeal, set aside the order of the CIT, Gulbarga and directed grant of recognition under Section 80G(5)(vi) read with rule 11AA(5) of the ‘Act’. - Decided against revenue - ITA No.6002/2011 - - - Dated:- 25-2-2016 - RAM MOHAN REDDY AND B MANOHAR, JJ For the Petitioner : Ameet Kumar Deshpande, Adv JUDGEMENT PER: RAM MOHAN REDDY: The substantial question of law that was framed when this appeal was admitted on 20.04.2011 reads thus: Whether approval under Section 80 G(5)(vi) of Income Tax Act can be granted before the end of financial year, when the trust/institution had not appended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ine and examine whether income of the trust qualifies for exemption under Section 11(A) of the Act . In the opinion of the CIT, Gulbarga, (i) even it there is nil income, the prescriptions and prohibitions incorporated under Sections 11, 12 and 13 have to be complied with whereupon a decision for the whole year can be taken and not for part of the year; (ii) an undated certificate under Section 13(1)(c) of the Act furnished by the trustees annexed to Form 10G dated 22.07.2009 certifying there was no violation of provision of Section 13(1)(c) of the Act does not qualify as presumption in favour of the assessee for the remaining part of the financial year so as to claim exemption under Section 11 of the Act ; and (iii) there was necessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r observed that recognition under Section 80G of the Act cannot be granted on the presumption of compliance of the Act , even though genuine donors are deprived of the benefits of the Act. 6. In view of 80G(5)(i) of the Act the Tribunal observed that when an institution/trust derives any income, such income would not be liable to inclusion in its total income by virtue of its recognition under Section 12A of the Act and therefore the assessee is entitled to grant of recognition under Section 80G of the Act subject to compliance of other provisions of the Act . It further noticed Action Points provided in Form 10G, item No.3 stipulating that though no time limit is prescribed for submitting the application, but in the mutual inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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