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TMI Blog2011 (1) TMI 1398X X X X Extracts X X X X X X X X Extracts X X X X ..... ition u/s. 80G of the Act was filed by the assessee before the CIT(Exemption), Bangalore on 5.8.2009. This application was transferred to the jurisdictional CIT, Gulbarga on 22.9.2009. The ld. CIT, Gulbarga, after hearing the case on 24.2.2010, a separate order for grant of registration u/s. 12A of the Act was passed on the same date. However, with regard to issue of recognition u/s. 80G, the applicant was asked to furnish compliance u/s. 80G(5)(i) of the Act. The assessee s representative filed a reply which was received by the Revenue on 27.2.2010 wherein the activities of the trust was stated. It was observed by the CIT that the trust even though had a broad spectrum of philanthropic activities, had not commenced its activities as on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(c) of the Act cannot bestow any presumption in favour of the applicant for the remaining part of the financial year and also the claim for exemption u/s. 11 has to necessarily be decided for the year as a whole and not part thereof. Due to these factors, the ld. CIT considered the application for grant of approval u/s. 80G in Form 10G is premature since the conditions stipulated under the Act is not satisfied. 3. Ld. AR submitted before us that the assessee had filed its application for grant of approval under section 80G of the Act on 5.8.2009. As per Rule 11AA(6), the ld. CIT was barred by limitation to pass an order u/s. 80G of the Act. Therefore, it was prayed that recognition u/s. 80G of the Act had been deemed to be granted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 or clause (23AA) or clause 23C of section 10: From the order of Ld.CIT(E) it appears that the ld. CIT mistook the provisions of the Act to mean that only after deriving the income by the Trust and after examining whether such income is applied in such a manner complying with the provisions of section 11, 12, clause (23AA) or clause (23C) of section 10 of the Act by the Revenue, recognition u/s. 80G(5)(iv) can be granted. Recognition U/s 80G of the Act cannot be granted on the presumption of compliance of the Act, even though the genuine donors are deprived of the benefits of the Act. 7. On a plain reading of the section 80G5(i) o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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