TMI Blog2010 (2) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... d out charitable activities during the relevant period. In fact, the crucial test of granting exemption u/s 11 as well as recognition u/s 80G is that the assessee should have been carrying on charitable and/or religious activities. As far as the assessee is concerned, even though it is established for the purpose of indulging in medical and educational charitable activities, no such activities were carried out during the relevant period. No medical activities have been carried out. The assessee has borrowed funds and constructed a building. The building was let out to another educational institution to carry on the educational activities of the latter. The relationship is that of a landlord and tenant. The rental income was earned by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax (Exemptions), seeking renewal of recognition under section 80G. The said authority, on perusal of accounts and other particulars of the assessee-trust, found that the assessee-trust has not carried out any charitable activity in tune with its proclaimed objects and the only activity carried on by the trust was to construct a building and let it out on rent and in such circumstances, it is to be held that the assessee has violated the provisions of law contained in section 80G(5)(ii). In the light of the above findings, the competent authority rejected the renewal application put in by the assessee. The assessee is aggrieved and, therefore the appeal before us. The grounds raised by the assessee are categorised as under : (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 of the Income-tax Act, 1961, as well as recognition under section 80G is that the assessee should have been carrying on charitable and/or religious activities. The law otherwise stated in sections 11, 12, 80G etc., is all procedural and regulatory in nature. The basic test is whether the assessee has carried out any charitable activity during the relevant period or not. As far as the assessee is concerned, even though it is established for the purpose of indulging in medical and educational charitable activities, no such activities were carried out during the relevant period. No medical activities have been carried out. The assessee has borrowed funds and constructed a building. The building was let out to another educational instituti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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