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2017 (5) TMI 633 - AT - Income TaxRejecting application seeking exemption u/s 80G(5)(vi) - CIT (Exemption) has pointed out that the applicant primarily intends to carry out the activities outside India and the applicant has not submitted any approval u/s 11(1)(c) - Held that:- On combined reading of section 80G(5)(vi) and section 11(1)(c) of the Act, the approval under section 80G is subject to grant of approval under section 11(1)(c) of the Act. In the instant case, since such approval is not in place, the requirement of section 80G(5)(vi) cannot be said to be satisfied. Therefore, the issue is not that the scope of activities should be restricted to India and it cannot be carried out outside of India. The issue is limited to carrying out the activities outside India after seeking approval from competent authority u/s 11(1)(c) of the Act. The ld CIT(E) was therefore correct in denying the approval under section 80(G)(vi) in absence of approval of competent authority under section 11(1)(c) of the Act. Applicant has simply collected funds and has not carried out any significant charitable activities - Held that:- Regarding the activities carried out by the appellant towards achievement of its charitable objectives, the CIT(E) has stated that the assessee has entered into memorandum of understanding with Digital Empowerment Foundation on dated 10.08.2015 with a focus to benefit the inaccessible people in the villages of India with wireless connectivity.” Further, the ld CIT(E) noted that the assessee has alloted funds of ₹ 26,35,440/- for solar work at Guatemala City and ₹ 51,94,250/- for solar work at Philippine. The ld CIT(E) therefore acknowledges all these facts and the only reason stated to be non carrying out any significant activity by the assessee. In our view, given the fact that the assessee has only been incorporated around an year back and there are actions which are taken by the assessee towards achieving its charitable objectives which are not doubted, the approval under section 80G cannot be denied solely on this ground and to this extent, we do not concur with the ld CIT(E). The fact remains that the assessee has not obtained the approval under section 11(1)(c) of the Act and in absence of the same, the application under section 80G(5)(vi) has rightly been rejected by the ld CIT(E). The appeal of the assessee thus stands dismissed.
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