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TMI Blog2017 (7) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... wing substantial questions of law:- "(i) Whether in the facts and circumstances of the case, the Tribunal was justified in law in directing to grant approval u/s.80G(5) to the respondent despite the fact that the trust does not fulfill the conditions u/s.80G(5)(i) of the Act. (ii) Whether in the facts and circumstances of the case, the Tribunal was justified in law in directing to grant approval u/s.80G(5) to the respondent despite the fact that the activities of the trust cannot be said to be charitable. (iii) Whether in the facts and circumstances of the case, the Tribunal was justified in law in allowing the appeal of the respondent assessee and directing the approval of exemption u/s.80G(5) when activity of running of school is ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e trust deed authorizes the trustees to use immovable property of the trust for the purpose of any scheme of charity. Running of School is a charitable activity and therefore, running of school is covedred under the trust deed. The contention of assessee was considered but not found acceptable. Relevant extract of para-22 of the trust deed is reproduced as under:- "......it shall also be lawful for the trustees to permit an a immovable property for being part of the trust fund to be held used and enjoyed for the purpose of any scheme of charity or other purpose of these presents including the office of the trustees and their officials and employees for the purpose of these presents as also the residence of such of the employees, the trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rust as available in the trust deed and in the light of relevant provision of the Act. It is found that the trust stands registered u/s 12A of the Act. Therefore , there cannot be two opinions and the ld CIT cannot dispute the fact that the objects of the trust are not charitable in nature. Having observed as above, we are satisfied that in clause 20 of the trust deed, the trust is permitted to carry on any scheme or charity and it is not restricted to display of Museum Artifacts. ''It shall also be lawful for the Trustee to permit any immovable property forming part of the Trust Fund to be held used and enjoyed for the purpose of any scheme of charity or other purpose of these presents. The school is an unit of the trust and its establis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; (iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; (iv) the institution or fund maintains regular accounts of its receipts and expenditure; 9[* * *] (v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 2510 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onditions laid down in sec 80G(5) of the Act. Accordingly, we do not find any reason for not grating approval u/s 80G(5) of the Act. The observations made by the ld. CIT are not correct. Any income drawn by the appellant trust cannot be included in its total income under the provision of section 11 and 12 or clause (23AA) or clause (23C) of section 10. As a result, we allow appeal of the appellant trust and direct the ld. CIT to grant approval to it u/s 80G(5) of the Act as has been prayed by the appellant trust." 5. We have heard learned counsel for the parties. 6. Taking into account that the activities which are carried out by the respondent is covered under Section 80G(5)(vi) inasmuch as the education will be a part of charitable act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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