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TMI Blog2020 (1) TMI 1017X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration under section 12AA unless the genuineness of the activities of the assessee-trust or its charitable objects is doubtful. Also see ESCORTS SKILL DEVELOPMENT VERSUS CIT (EXEMPTIONS) , CHANDIGARH [ 2019 (5) TMI 770 - ITAT DELHI] - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... that is compulsory to be spent. In this case seeking approval under section 80G is such an arrangement that would help to redeem its group companies corpo rate social responsibility obligations. It is reiterated that the benefit of approval for exemption to donations cannot be extended to an entity that is part of an arrangement that allows corporates to claim deduc tion on an amount that is otherwise not allowable as deduction from income (as expenditure) as per the Finance (No. 2) Act, 2014. It is also pertinent to mention that the activities of the company has brought out in the preceding paras clearly shows that the company is not pursuing charitable activities and hence the certificate of exemption under section 12AA is also need to be examined and reviewed. The Assessing officer is also asked to examine the claims of the company under section 12AA. In the light of the above, I have no option but to reject the application under section 80G(5) of the Income-tax Act." 3. Being aggrieved by the above order of the Commissioner of Income-tax (Exemptions), the assessee has come in appeal before us. 4. We have heard the rival contentions of the learned authorised representati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 any other educational institution recognised by the Government or by a university established by law, or affiliated to any university estab lished 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 31st 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 ; and. . ." 5. So far as the contention o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ponsibility activities, the activities in the nature of eradicating hunger and poverty, promotion of education, promoting gender equality, etc., are also provided. These activities are in the nature of public charity. Further, the corporate social respon sibility activities itself are in the nature of public charitable activities. As regards the reasons (iv) given by the Commissioner of Income-tax (Exemptions), no activities in sync with the requirement of the Companies Act has taken place in the trust so far. For the purpose of granting registration under section 12AA only two factors are to be seen by the Commissioner of Income-tax (Exemptions) which are the objects of the trust being charitable in nature and the genuineness of activities. There is no requirement to see where the activities are in sync with the Companies Act or not. Reasons (v) given by the Commissioner of Income-tax (Exemptions) that the activities so far further show that the trust is relinquished its function as the primary implementation agency and undertaking its own programmes to impact direct beneficiary by transferring its funds to other society. Even the funds given to another charitable society for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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