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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 ..... hat the applicant is not in need of funds". 2) That having regard to the facts and circumstances of the case, Ld. CIT has erred in law & the facts that it is not carrying its objects as specified in the memorandum of association. 3) That having regard to the facts and circumstances of the case, Ld.CIT has erred in law and on facts in making the conclusion that the construction was to be undertaken by the government of Haryana till the building was handed over to the society." 3. Brief facts of the case are that, the assessee had been given with registration 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 ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed over to the Government of Haryana which was to construct the building and handed over to the society. Therefore, submitted that the Grounds of Appeal are devoid of merit and the Appeal of the Appellant is deserves to be dismissed. 7. We have heard the Ld. Departmental Representative and perused the material available on record. The Ld. CIT(E) while rejecting the application filed by the appellant u/s 80G of the Act held as under:- "6. On the fixed date, the applicant provided receipts-payments accounts for the last three financial years and a copy 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 Panch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government of Haryana till the building was handed over to the society. To that extent, it is meaningless to collect fund from public with specific direction for construction of Gurjar Bhawan. Further perusal of bank accounts corroborates that Grant from the Government has been received by applicant from time to time. It is revealed that Rs. 36 lakhs and Rs. 21 lakhs has been credited in society's account from account of Deputy Commissioner during FY 2015-16 and F.Y 2016-17 respectively. Although, the purpose of the legislature to include 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 support ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur of corpus donations and in the bargain precluding expenditure on the objects that could measure to the requirements of charitable purpose. Further perusal of Income-Expenditure accounts, revealed that applicant is not in receipt of any donations in the preceding years. Though, the balance sheet reveals addition in the capital fund by accumulating corpus donations which were shown in the Receipt and Payment accounts and applicant is continuously reducing its corpus fund by deducting its Deficit i.e Excess of Expenditure over income. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Local Area Development Scheme as amended from time to time for implementation of the work under the aforesaid MPLADS". "A work at village, Kuslipur No.2 Distt. Palwal regarding the construction of Patel Gurajr Bahwan costing the value mutually agreed upon by the parties and that has been duly recommended by concerned MP under the MPLAD scheme, shall be undertake by the first party, to be handed over to the second party (Applicant Society) after completion of the construction." 9. By examining the above Clauses 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 Societ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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