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2015 (11) TMI 571 - AT - Income TaxRejection of application filed under section 80G(5)(vi) - as per revenue the benefit of the activities of the assessee goes to the members of the assessee's council only and general public at large is not the beneficiary in any manner - Held that:- Contention of the assessee that registration of an Institution under section 12A by itself is a sufficient proof of fact that trust or institution concerned is created or established for charitable/ general public utility purposes and it is eligible for renewal of approval under section 80G enjoyed in the earlier years. The admitted facts in the case of the present assessee are that it was registered under section 12A of the Act and was enjoying the same when it moved the present application for renewal of approval under section 80G enjoyed earlier. It is also an undisputed fact that there were no new facts during the year under consideration in comparison to the facts of the other years when the assessee was granted benefit of section 80G of the Act When on the same set of facts and circumstances of the case, renewal of approval under section 80G(5)(vi) has been granted for earlier years and there being no change in the facts and circumstances in the years for which renewal is sought for, there is no justification to reject the assessee's application for renewal of exemption certificate under section 80G(5)(vi) for the assessment year 2010-11 onwards. it was not proper to characterise the activities of the assessee as activities amounting to a business in the generally understood sense of the word, the most important feature of business being profit motive. It was held that it had not been suggested by the Income-tax authorities that the activities carried out by the assessee were propelled by any profit motive, therefore, the provisions of section 11(4)(a) were not attracted. Under these facts and circumstances, we hold that the learned Director of Income-tax (Exemptions) was not justified in denying the renewal of approval under section 80G(5)(vi) of the Act to the assessee. Thus, while setting aside the order impugned, we direct the learned Director of Income-tax (Exemptions) to grant renewal of approval under section80G(5)(vi) of the Act as applied for by the assessee. - Decided in favour of assessee.
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