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2017 (7) TMI 1129 - HC - Income TaxExemptions u/s 10(23C)(iv) - genuineness of the activities of the trust or institution and also attainment of objects of the trust - Held that:- In the present case, capital expenditure had not been charged to profit and loss account. The third proviso to section 10(23C) of the Act provides for " applies its income or accumulates it for application, wholly or exclusively to the objects for which it is established ". Thus, the amount was spent by the assessee towards the object. It was further recorded by the Tribunal, after examining the matter that the amounts spent by the assessee were clearly the application of its income in nature which had been spent to achieve the objects of the assessee. The assessee had been granted approval under section 10(23C)(iv) of the Act and thus, there was no question of disallowing of any amount of this nature. As decided in the case of [Commissioner of Income-tax Versus Red Rose School 2007 (2) TMI 575 - ALLAHABAD HIGH COURT ] CIT has to satisfy himself about the genuineness of the activities of the trust or institution and also about the objects of the trust or the institution - on being satisfied he will either grant the certificate or would reject - thus Revenue has not been able to point out any error in the order passed by the Tribunal so no substantial question of law arises - appeal is dismissed.
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