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2009 (8) TMI 756 - AT - Income TaxDeduction u/s 80G(5)- Charitable purpose - Renewal of exemption - the CIT has wrongly interpreted the amended definition of proviso to s. 2(15). The object as is analyzed from the amended proviso is to create a barrier for those assessees who are engaged in business activities in the garb of charitable purpose. But it is not meant that the assessees really engaged in charitable purpose should be compelled to meet with a barrier for the said proviso. The amended proviso is constraint for those assessees making an attempt to defraud the law in the garb of charitable purpose but it is certainly not meant for those assessees who are really engaged in the activities of charitable purpose. The term as per the proviso of "advancement of any other object of general public utility" is having a wider connotations to bring within its meaning the intent and purpose of the activities carried out by the appellant-assessee trust. - Besides this wrong legal interpretation the CIT has not been able to establish a single instance of having any profit motive or of having any trade activity by the assessee trust. It is an undisputed fact that the assessee trust has been granted registration under s. 80G(5), registration under s. 12A, has been approved under s. 10(23C)(iv) as has been analyzed in detail above in this order. Therefore, we fail to understand as to how the CIT taking undue advantage of the amended definition of s. 2(15) w.e.f. 1st April, 2009 has rejected the renewal application filed by the assessee trust under s. 80G(5). - Application for renewal accepted - decided in favor of assessee.
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