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2019 (9) TMI 945 - ITAT DELHIGrant of approval u/s 80G - approval denied as the assessee had incurred only ₹ 6,000/- for charitable activities such as distribution of stationary items Bottles and Tiffin boxes for orphan boys - applicant was engaged in charitable activities [by way of distribution of stationary for the new terms for orphaned girls in a Child Care institution for girls (NGO), and by way of giving of Bottles and Tiffin Boxes for orphaned boys in a Child Care institution for Boys (NGO)] - HELD THAT:- Grounds on which approval under section 80G of the Income Tax Act can be denied to an applicant are specified in Rule 11AA (5) of I.T. Rules which refers to the conditions laid down in clauses (i) to (v) of sub section 5 of section 80G of I.T. Act. Nowhere it is the case of the ld. CIT(E) that any of the conditions laid down in clauses (i) to (v) of section 80G(5) of the I.T. Act are not fulfilled. It is also nowhere the case of the ld. CIT(E) that objects of the applicant trust are not charitable. On perusal of the trust deed, already reproduced in foregoing paragraph (B) of this order, we find that the trust is expressly declared to be a public charitable trust in paragraph (6) of the trust deed. It is nowhere the case of the ld. CIT(E) that the applicant did not comply with procedural requirements prescribed under sub-Rules (1), (2) and (3) of Rule 11AA of I.T. Rules. Moreover, in view of the foregoing paragraph (C.1) of this order, we find that further documents or information called for by the ld. CIT(E) were provided by the applicant trust. When the applicant has limited financial resources (₹ 19,000/- in this case), the mere fact that the applicant has not spent substantial amount for charitable work cannot be held against the assessee so far as the approval under section 80G of the Income Tax Act is concerned. Unless the learned CIT(E) expresses his satisfaction that one or more conditions laid down in Clauses (i) to (v) of Section 80G(5) of Income Tax Act are not fulfilled; the learned CIT(E) is required to grant approval under section 80G of I.T. Act, when the applicant has complied with procedural requirements prescribed under sub-Rules (1), (2) and (3) of Rule 11AA of I.T. Rules. We are of the view that the learned CIT(E) erred in denying approval under section 80G - Decided in favour of assessee.
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