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2018 (12) TMI 699 - HC - Income TaxCharitable activity - approval u/s 80G(5) - as per revenue the applicant has not commenced any charitable activity as per its objects in last three years - ITAT allowing approval - Held that:- According to us, an assessee can neither be expected to spend higher amount than its income nor can it be expected to elongate its feet beyond its blanket. The amount of ₹ 41,000/-, which the respondent Trust has spent during the period of three years cannot be said to be insufficient, considering its income/receipts for the corresponding period. In the present facts, it was absolutely erroneous on the part of the Commissioner to infer that the Trust has failed to carry out its objects. An appraisal of the scheme of Section 80G and Rule 11AA, more particularly sub-rule (4) thereof clearly suggests that an application of the Trust for grant of approval under Section 80G(5)(vi) of the Act can be turned down only if the trust fails to carry out its objects and/or violates the conditions encapsulated in Clause (i) to (v) of Section 80G(5) of the Act of 1961. Neither the Commissioner (Exemption) has recorded any finding nor the counsel for the Revenue has brought to fore, any breach of the conditions enumerated in clause (i) to (v) of Section 80G(5) of the Act; which is a precursor for refusal of the approval u/s 80G. Appellant has neither pointed out any statutory provision nor has he cited any precedent, which provides or rules that in case the amount spent by a trust is insignificant, its request for approval under Section 80G of the Act deserves to be rejected. - Decided in favour of assessee.
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