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TMI Blog2023 (9) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... d over to the society - HELD THAT:- PCIT found that the expenditure for the building was to be financed from MPLAD Scheme and construction was to be undertaken by the Government of Haryana till the building was handed over to the Society. Though the assessee has specifically urged a ground against the observation and the conclusion of the CIT(A) that the construction has to be undertaken by the Government of Haryana till the building was handed over to the society but the assessee has not produced any evidence/document in support of the said contention of the assessee to controvert the findings of the CIT(A). The action of the CIT(E) in relying on the agreement entered into between Government of Haryana and the appellant society and co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on u/s 12AA of the IT Act, 1961 ( Act for short) and the assessee filed an application in Form No. F10G on 28/06/2017 for approval u/s 80G of the Act. The application filed by the assessee has been rejected by the CIT(E) A.O. vide order dated 28/12/2017. Aggrieved by the order dated 28/12/2017, the assessee preferred the present Appeal on the Grounds mentioned above. 4. None appeared for the assessee. Though the notices has been served to the assessee and vakalat is also filed on behalf of the assessee, the assessee or his representative failed to appear before us, in view of the same, we are constrained to decide the appeal after hearing the Ld. Departmental Representative and on perusal of the material available on record. 5. As pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opy of resolution dated 20.06.2011 passed by Gram Panchayat, Kuslipur, Tehsil Palwal regarding proposal of donating land to the applicant society. However, it is not clear whether the Gram Panchayat is the competent authority to give the land to society by passing a mere resolution. It is also pertinent to mention that an agreement existed between the Government of Haryana and applicant society vide which it is mandated that Government of Haryana shall undertake the construction of Patel Gurjar Bhawan on the recommendation of the Member of Parliament as per the guidelines on Member of Parliament Local Area Development Scheme (MPLADS) and same was to be handed over to the applicant society after completion of the construction. The terms of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de this section in the Act is to promote and encourage people for making donations to societies/trust which otherwise-lack funds for performing charitable activities and not those who are already supported by the Government and the people's representative. Not only does the applicant not lack in resources there is no activity at all in respect of the stated objects. Further, the applicant has not also elaborated on the exact contours of the expansion they wish to undertake and the quantum of finances that would be necessary for pursuing objects other than construction of Gurjar Bhawan. 7. The perusal of income expenditure accounts also revealed that applicant did not incur any expenditure towards the stated objects. It is also se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Given the fact that the corpus fund is a fund which could be disturbed only in event of extreme exigency, the applicant eating into the corpus is not permissible. 9. Keeping in view all of above it is safe to conclude the applicant has failed in its pursuit for approval u/s 80G. The real purpose, it emerges clearly, is to construct a building with no emphasis whatsoever on the objects on the basis of 12AA registration was accorded. It is further pertinent to mention that the applicant has generate huge resources in the name of building construction even though it was to be financed by/from the MPLADS and constructed by the Government of Haryana. The applicant has further not evidenced whether the money generated was handed over to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Agreement, the Ld. PCIT found that the expenditure for the building was to be financed from MPLAD Scheme and construction was to be undertaken by the Government of Haryana till the building was handed over to the Society. Though the assessee has specifically urged a ground against the observation and the conclusion of the CIT(A) that the construction has to be undertaken by the Government of Haryana till the building was handed over to the society but the assessee has not produced any evidence/document in support of the said contention of the assessee to controvert the findings of the CIT(A). The action of the CIT(E) in relying on the agreement entered into between Government of Haryana and the appellant society and concluding that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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