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TMI Blog2017 (2) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Shri Vikram Singh Yadav, AM Assessee by : Shri P.C. Parwal (CA) Revenue by : Shri H.V. Gurjar (CIT) ORDER Per Shri Kul Bharat, JM The appeal by the assessee is directed against the order of ld. CIT (Exemptions), Jaipur dated 09.09.2016. The only effective ground raised by the assessee in the appeal is as under :- The learned Commissioner of Income Tax has erred on facts and in law in rejecting the application of assessee seeking exemption u/s 80G(5) of the Income Tax Act, 1961. 2. Briefly stated the facts are that the assessee had filed an application on 21.03.2016 in Form No. 10G seeking approval under section 80G(5)(vi) of the Income Tax Act, 1961 (hereinafter referred to as the Act). However, the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same is also reflected in the income and expenditure account for that year. Reliance in this connection is placed in case of Hardayal Charitable and Educational Trust vs. CIT (2013) 355 ITR 0534 (All.)(HC). In this case, assessee trust applied for grant of registration u/s 12AA and approval u/s 80G(5). Entire information asked by CIT was provided by assessee. CIT refused to grant registration and approval on grounds that trust was in process of construction of colleges for studies and that huge amount was spent on advertisement and promotion of business of its family concern. In subsequent A.Y registration u/s 12AA approval u/s 80G was granted with conditions that exemption certificate would be effective from A.Y. 2012-13. Held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Educational Trust is overruled by the Allahabad High Court, shows that the appellant is well within its right to seek approval under section 80G as well. In view of above, the CIT (Exemption) is hereby directed to grant approval u/s 80G(5) of the IT Act, 1961 to the appellant. In view of above, the ld. CIT be directed to grant approval u/s 80G(5) of the IT Act, 1961 to the assessee. 3.1. The ld. D/R has opposed the submissions and supported the orders of the authorities below. 3.2. We have heard rival contentions, perused the material available on record and gone through the orders of the authorities below. There is no dispute with regard to the fact that the assessee has been granted registration under section 12AA of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et up to achieve its objects of establishing educational institution, was in process of establishing such institutions, and receives donations, registration u/s 12AA cannot be refused on ground that Trust had not yet commenced charitable or religious activity. Enquiry of the CIT at such preliminary stage should be restricted to genuineness of objects and not activities unless such activities had commenced. 2.11 Interestingly, the decision of the Coordinate Bench in case of Hardayal Charitable and Educational Trust which was overruled by the Allahabad High Court was quoted by the Revenue while denying the exemption initially to the appellant under section 12AA. Given that the appellant has subsequently been granted approval under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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