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TMI Blog2018 (11) TMI 1919X X X X Extracts X X X X X X X X Extracts X X X X ..... -1-2009 the assessee filed an application in Form 80-G of the Income Tax Act, 1961 seeking renewal of the recognition. The Director of Income Tax, (Exemptions) rejected the application. Aggrieved by the same, the assessee preferred an appeal before the Tribunal. The Tribunal by its order vide Annexure-A, expressed a doubt whether the assessee is entitled even for the benefit under Section 11-A and therefore the matter was remanded. On remand, the Commissioner passed an order on 31-8-2009 rejecting the application for renewal of recognition under Section 80-G. Aggrieved by the same, the assessee preferred an appeal before the Tribunal. The Tribunal dismissed the appeal. Hence, this appeal. By the order dated 8-11-2010 the appeal was admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e conditions as laid down under Section 80- G(5)(ii) and came to the conclusion that the income was not being used for charitable purposes. Therefore, the Commissioner held that there is an absence of charitable activity. That the activity of the Trust is not in consonance with the objects of the Trust. That only some percentage of the income is used for a charitable purpose. 2. The learned counsel for the revenue contends that what is being used by the assessee towards the object of the Trust is very miniscule. That most of the income that is used is only as a result of letting-out of the building, for business purposes. That it is not the object of the Trust at all. 3. The same is countered by the learned counsel for the assessee on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment proceedings. The question whether renewal is justified or not, is not necessary to be considered at this stage. The applicability of the income of the assessee whether it is for charitable purposes or not are all questions of fact and necessarily can be gone into by the assessing authority at the time of assessing the income of the assessee. Therefore, it is needless to state that the assessing authority shall look into all the material placed in order to ensure that the income is used for a charitable purpose in accordance with law. Under these circumstances, the substantial question of law is answered by holding that the Tribunal was not right in law in holding that the appellant Trust was not eligible for renewal for approval u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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