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TMI Blog2017 (11) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... grant of approval under section 80G act as an enabler and a catalyst to encourage the prospective donors to look at the intended activities of the assessee and where they find the same to be acceptable, to provide financial support through donations/contributions. In our view, what is of relevance for the purposes of grant of approval under section 80G is whether the objectives are charitable or not and the activities, so started, howsoever insignificant it may be, are genuine activities or not and whether the same are in consonance with and in furtherance of the objectives of the assessee society. As the appellant has been duly registered under section 12AA which shows that CIT has already verified its objectives and its establishment f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption u/s 80G at this stage and the application filed by the assessee was rejected. 3. During the course of hearing, the ld. AR submitted that the assessee submitted its application for grant of registration u/s 12AA as well as u/s 80G before the ld. CIT(E) on 18.11.2016. The ld. CIT(E) granted registration u/s 12AA on 18.05.2017 however, approval u/s 80G was not granted by order of even date. 4. It was further submitted by the ld AR that as per provisions of Rule 11AA(5), ld CIT is empowered to refuse registration only in those cases where conditions laid down in clause (i) to (v) of section 80G(5) are not fulfilled. In the case of the assessee, it is submitted that all the conditions mentioned in clause (i) to (v) of 80G were fulfil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing decision of the Jaipur Bench of ITAT in the case of Jasoda Devi Charitable Trust V/s CIT 43 Tax World 175 wherein it was held held that registration under section 12AA and as well as under section 80G should be allowed to the newly created trust if conditions are fulfilled. The head notes of the case are as under:- Before Tribunal it has been submitted by the assessee that CIT has passed order without giving any opportunity of hearing and is thus violative of the principles of natural justice. Assessee further submitted that charitable activities cannot begin immediately after formation of Trust and that there is no requirement of filing of income and expenditure account unless the trust is in existence for a year or more- Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that certain scholarship amount has been disbursed during the year as per its objects and the said fact is on record and submitted before the ld CIT(E) which he has failed to consider. In our view, what is a significant activity is a very subjective term and cannot be a sole basis for rejection of application. Where the assessee has various objectives, it is not necessary that the activities in furtherance of each of the objectives should be started simultaneously and at the same pace and level. It is up to the assessee to determine which all activities can be started initially and how the same can be expanded subsequently. And for that purposes, grant of approval under section 80G act as an enabler and a catalyst to encourage the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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