9911796707
TMI Blog2018 (7) TMI 1729X X X X Extracts X X X X X X X X Extracts X X X X ..... the case and in law, the Hon'ble ITAT is justified in allowing of approval u/s 80G(5) notwithstanding that the applicant has not commenced significant charitable activity as per its objects?" 3. The facts of the case are that the applicant filed application on 21.10.2016 in Form No.10G for seeking approval U/s 80G (5) (vi) of the Income Tax Act, 1961. The applicant was issued a letter/notice No. 3887 dated 24/25.10.2016 requesting it to submit certain documents/explanations by 07.12.2016 and also to produce original Trust Deed/MOA for verification on that date. In compliance to which Shri V.K. Data, CA/AR of the applicant trust attended and filed written submission and case discussed with him. 3.1 The details were examined in view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00.00 20.01.2017 To Deepak Plastic & Gift Corner-Purchase Lunch box for donation to Karwa foundation Journal 23,650.00 26.01.2017 To Primary Education Department, Alwarfor milk, food and chair Journal 20,000.00 By Closing Balance 86,450.00 86,450.00 Total 86,450.00 86,450.00 5. On examination of the above charity account, it is seen that no significant activities has been started by the applicant as per the objects. The trust came into existence on 21.07.2016 and in period of more than eiht months no significant charitable activity has been commenced. Seeing the insignificant nature of activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d facts, we need to examine whether the law mandates significant charitable activities to be carried out for become eligible to be registered u/s 80G(5)(vi) of the Act. 6.2 As per 80G(5), the provisions of Section applies to donations to any institution or fund referred to in sub clause (iv) of clause (a) of sub-section(2), only if it is established in India for a charitable purpose and if it fulfills the followings conditions. (i) Where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of section 11 and 12 of section 10. [Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by law, or is any other educational institution recognized by the Government or by a University established by law, or affiliated to any University established by law, or is an institution financed wholly or in part by the Government or a local authority. (vi) In relation to donations made after the 31 st day of March, 1992, the institution or fund is for the time being approved by the commissioner in accordance with the rules made in this behalf." 6.3 Further, as per Rule 11AA(3) of Income Tax Rules, 1962, The Commissioner may call for such documents or information from the institutions or funds or cause such inquiries to be made as he may deem necessary in order to satisfy himself about the genuineness of the activities of such inst ..... X X X X Extracts X X X X X X X X Extracts X X X X
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