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2018 (8) TMI 198 - HC - Income TaxClaim under Section 80G - charitable purpose - Held that:- In the present case, there were never a case set up of a donation made to the trust. The claim was made of business expenditure which was later altered to one of a donation to the trust. The purpose of the activity for which the fund is applied does not change with the change of the provision under which the claim for deduction is raised. The fund was applied for the air-conditioning of a town hall which is owned by the Local Authority and bears the name of the founder of the assessee. We do not see any charitable purpose in the application of the funds and we also notice that the trust had no control over the funds and acted merely as an agent of the assessee in carrying out the air-conditioning of the hall, if at all it was so carried out. We find that there is no donation made by the assessee to the charitable institution; which it could have applied to the charitable purposes for which it was established. Hence we reject the claim and affirm the order of the Assessing Officer, setting aside those of the first appellate authority and the Tribunal to that extent. We answer the alternate question raised by us in favour of the revenue and against the assessee.
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