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2014 (11) TMI 1165 - HC - Income TaxRecognition under Section 80G(5) - proof of charitable activities - examination of extent and nature of activities - Held that:- It is well settled position of law that at the time of granting approval under Section 80G of the Act, what is to be examined is the object of the trust and so far as the aspect of income is concerned, same can be very well examined by the AO at the time of framing assessment. However, in the case on hand, the assessee-Trust was refused recognition only on the ground that the assessee- Trust had not spent 85 per cent of the amount towards the objects of the Trust. The Tribunal, while passing the impugned order, relied on a decision in “CIT VS. SURYA EDUCATIONAL & CHARITABLE TRUST” [2011 (10) TMI 47 - PUNJAB AND HARYANA HIGH COURT ] wherein held that at the stage of registration under Section 12AA of the Act, the extent and nature of activities are not required to be examined and the same is required to be examined in assessment proceedings. We are of the opinion that the Tribunal committed no error in issuing direction to grant recognition to the Respondent-Trust under Section 80G(5) of the Act. - Decided in favour of assessee
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