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2011 (3) TMI 86 - AT - Income TaxDeduction under section 80G - Running of school - For the purpose of deciding whether or not the approval is to be granted for the purpose of section 80G is whether or not the conditions of section 80G(5)(i) to (v) are satisfied and as per the mandate of rule 11AA(4) of the Rules, once these conditions are satisfied, grant the approval. The contention of the learned CIT that the assessee trust mainly incurred expenses for building construction which is about Rs. 34 lacs itself is not a good ground for denying exemption because a good building is also the basic requirement for the healthy environment for the students - Even otherwise if, at a later stage, it is found that the assessee is involved in "commercial considerations" contrary to the objects of the assessee society, the department is free to take appropriate action in accordance with law - The contention of the revenue regarding conversion of agricultural land for commercial use (here for constructing school building) is concerned, it supports the case of the assessee as the permission for such conversion, for constructing the school building, was duly obtained from the office of the Director of Town & Country Planning, SDO, Public Works Department and local Gram Panchayat, etc - Even if the land was obtained through registered gift deed itself is not a good ground for denying exemption to the assessee. Hence, all the necessary requirements under rule 11AA(4) and conditions of section 80G(5)(i) to (v) are satisfied, therefore, the learned CIT ought to have granted approval under section 80G(2)(iv) of the Act to the assessee - Accordingly, set aside the order of the learned CIT and direct him to grant approval under section 80G of the Act to the assessee.
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