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TMI Blog2021 (6) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure not exceeding 5% of its total income as stipulated u/s 80G(5B) will not be breached and therefore the adverse inference drawn against the assessee trust would not be sustainable in law. The order of the CIT(E) dated 19.06.2018 is set aside and the entire matter is restored back to the file of the CIT(E)/Competent Authority for de novo consideration in the light of facts available on record as well as fresh facts that may come to the light or pointed out to him by the assessee trust. It shall be open to the assessee trust to place all arguments and evidences in corroboration, as may be deemed necessary, in support of its application for approval 80G pending before the Competent Authority. Pertinent here to observe that the fair ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gious purposes from the F.Yr. 2014-15 to 2017-18 and therefore trust is not eligible for approval u/s. 80G(5) of the Income Tax Act, 1961. 3.0 The ld. Commissioner of Income-tax (Exemptions) erred in law and on facts in arriving at the conclusion that in absence of complete Form No. 10G, he was unable to satisfy about the genuineness of the activities of the appellant trust and whether the same were in consonance with its object despite the fact that he had himself passed order u/s. 12AA in the case of the appellant trust on 12th June, 2018. 4.0 The ld. Commissioner of Income-tax (Exemption) erred in law and on facts in not providing proper opportunity to the appellant trust before disposal of the application. 3. Briefly stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel referred para No. 3 of its order whereby an averment was made that the main object to the trust is religious in nature claimed to be stated by the assessee. The learned counsel thereafter adverted to a corrigendum to order under s. 80G(5) of the Act dated 10.09.2018 wherein the CIT(E) himself has deleted para No. 3 of the main order on the grounds of inadvertent mistake. The learned counsel pointed out that when the main order and the corrigendum thereto read in tandem, it will be apparent that a fundamental mistake was committed in the main order and the whole adjudication process was proceeded on the premise that the trust is religious in nature which mistake has a direct bearing on the conclusion drawn adverse to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration under s. 12AA of the Act granted by the CIT(E) has not been disturbed and is continuing to be effective till date. Thus, the whole purpose of registration would be rendered infructuous sans the approval under s. 80G of the Act. The learned counsel accordingly urged for a direction to the CIT(E) to revisit the factual position and grant approval under s. 80G of the Act as sought. 6. The learned DR for the Revenue, on the other hand, relied upon the order passed under s. 80G(5) of the Act sought to be assailed by the assessee. 7. We have carefully considered the rival submissions and material placed and adverted to in terms of Rule 18(5) Income Tax (Appellate Tribunal) Rules, 1963. As pointed out on behalf of the assessee, para 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st. Needless to say, it shall be open to the assessee trust to place all arguments and evidences in corroboration, as may be deemed necessary, in support of its application for approval 80G of the Act pending before the Competent Authority. Pertinent here to observe that the fair opportunity shall be granted to the assessee trust before coming to the conclusion as directed. The Competent Authority shall make every possible endeavor to dispose of the application for approval under s. 80G of the Act in question within 3 months from the date of service of this order. The assessee trust shall extend full co-operation in speedy disposal of the matter without any demur. 9. In the result, appeal of the assessee is allowed for statistical purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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