9911796707
TMI Blog2018 (12) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, considering its income/receipts for the corresponding period. In the present facts, it was absolutely erroneous on the part of the Commissioner to infer that the Trust has failed to carry out its objects. An appraisal of the scheme of Section 80G and Rule 11AA, more particularly sub-rule (4) thereof clearly suggests that an application of the Trust for grant of approval under Section 80G(5)(vi) of the Act can be turned down only if the trust fails to carry out its objects and/or violates the conditions encapsulated in Clause (i) to (v) of Section 80G(5) of the Act of 1961. Neither the Commissioner (Exemption) has recorded any finding nor the counsel for the Revenue has brought to fore, any breach of the conditions enumerated in clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Income Tax (Exemption), vide its order dated 21.08.2017. While declining respondent's request for grant of approval, the Commissioner observed that though the assessee Trust had come into being on 16.03.2010, but it has not carried out any significant charitable activities, hence grant of exemption at that stage was not in the fitness of things. The respondent Trust challenged the aforesaid order of the Commissioner (Exemption) by way of filing an appeal before the Tribunal. The above referred appeal of the respondent Trust has been allowed by the Tribunal vide its order dated 20.02.2018. While allowing the appeal, the Tribunal observed that the assessee has earned bank interest to the tune of ₹ 17,028/-, ₹ 36,865/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to elongate its feet beyond its blanket. The amount of ₹ 41,000/-, which the respondent Trust has spent during the period of three years cannot be said to be insufficient, considering its income/receipts for the corresponding period. In the present facts, it was absolutely erroneous on the part of the Commissioner to infer that the Trust has failed to carry out its objects. For the purpose of proper appreciation of the question involved in the present appeal, it would be apt to test the validity of the orders impugned on the anvil of Section 80G(5)(vi) of the Act read with Rule 11AA of the Income Tax Rules, the relevant extracts whereof are being re-produced hereinbelow :- "Section 80G. Deduction in respect of donations to certai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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; (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 25 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion or fund, he shall record such satisfaction in writing and grant approval to the institution or fund specifying the assessment year or years for which the approval is valid. (5) Where the Commissioner is satisfied that one or more of the conditions laid down in clauses (i) to (v) of sub-section (5) of section 80G are not fulfilled, he shall reject the application for approval, after recording the reasons for such rejection in writing : Provided that no order of rejection of an application shall be passed without giving the institution or fund an opportunity of being heard. (6) The time limit within which the Commissioner shall pass an order either granting the approval or rejecting the application shall not exceed six months from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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