TMI Blog2013 (5) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions stated in sec. 80G(5) of the Act, i.e., in our view, the Ld. CIT has not processed the applications filed by the assessee seeking renewal of recognition u/s. 80G of the Act in terms of relevant provisions of the Act. The application filed by the assessee on 17.03.2009 needs to be examined afresh and in that case, the second application filed by the assessee on 29-11-2010 shall become infructuous - We set aside both the impugned orders passed by Ld CIT and direct him to process the application filed by the assessee on 17.3.2009 in terms of the provisions of sec. 80G of the Act and take appropriate decision in accordance with the law - Appeal is allowed for statistical purposes and the other appeal of the assessee is dismissed as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 011. Aggrieved by the said order, the assessee has filed another appeal before the Tribunal and the same was numbered as ITA 538/Coch/11. Thus two appeals came to be filed by the assessee before the Tribunal on the very same issue. Since both the appeals have been preferred challenging the refusal of Ld CIT to renew the recognition granted to the assessee, if we dispose of the appeal numbered as ITA 557/Coch/09, the other appeal would become infructuous. 3. The solitary issue urged before us is whether the Ld CIT was justified in refusing to renew the recognition granted to the assessee u/s 80G(5)(vi) of the Act. The Ld. Counsel appearing for the assessee submitted that the assessee-Trust is running a museum without any profit motive and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the contrary, the Ld. DR submitted that the activity of running the museum cannot be considered as educational activity. The Ld D.R submitted that term 'education' referred in sec. 2(15) of the Act only refer to "formal education". Accordingly, the Ld D.R submitted that the activity of running the museum may fall under the residuary clause, viz., "object of general public utility", as defined in sec. 2(15) of the Act. The Ld. DR further submitted that the case law relied upon by the Ld. AR are not applicable to the facts of the instant case. Adverting our attention to the orders of the Ld. CIT, the Ld. DR submitted that the Ld CIT has given a categorical finding that the assessee-Trust did not carry on any charitable activity. Accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... table, particularly in view of the definition of "Charitable Purpose" in section 2(15) w.e.f. 01-04-2009. It may also be noted that the applicant is carried out any charitable activity by way of education, medical relief or relief of the poor. It has further been noticed that compared to the gross receipts of Rs.2,06,802/- for the year ended 31-03-2008, the amount applied for charity was Rs. 17,500/- only. 4. Exemption under sections 11 and 80G are intended for those institutions carrying on charitable activities. Mere narration of charitable purposes in the object clause will not by itself justify exemption. Absence of any charitable activity may lose the benefit of section 80G till such activities are resumed." 7. In the order dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e with the Ld CIT on this point. 9. There is no dispute with regard to the fact that the assessee trust is registered as a "Charitable trust" u/s 12A of the Act. It was also granted recognition u/s 80G of the Act up to the assessment year 2008-09. The said recognition entitles the persons giving donation to the assessee trust to claim deduction u/s 80G of the Act as per the provisions of sub-clause (iv) to clause (a) of sub-section 2 of 80G of the Act. Hence the assessee has filed application before Ld CIT seeking renewal of the recognition, which would enable it to collect donations. The sub sec. 5 of 80G prescribes the conditions for allowing deduction u/s. 80G of the Act in respect of donations referred in sec. 80G(2)(a)(iv) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titution or fund for any purpose other than a charitable purpose; (iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; (iv) the institution or fund maintains regular accounts of its receipts and expenditure; (v) the institution or fund is either constituted as a public charitable trust or registered under the Societies Registration Act, 1860 (2) of 1860), or under any law corresponding to that Act in force or in any part of India or u/s. 25 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law or affiliated to any University established by la ..... X X X X Extracts X X X X X X X X Extracts X X X X
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