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2013 (12) TMI 1248 - HC - Income TaxApplication for renewal of exemption u/s 80G - Held that:- The petitioner neither misutilised the grant nor utilised it for any business - The observations of CIT that the interest was utilised for business is not based on any material and the discussion of the manner in which the interest was utilised - He also did not record any finding that the respondent assessee did not comply with the terms and conditions of the utilisation of the grant - Section 80G(5)(i)(b) provides the condition for exemption or rejection of the application for renewal, if the donation made to the institution or funds are not used by it directly or indirectly for the purpose of such business - The Commissioner did not record any such finding that the funds, which was earmarked and was kept in separate account in fixed deposit was not used by the respondent assessee directly or indirectly - There was no occasion to misuse the funds as the hospital had not yet started and thus the plant and machinery could not be purchased from the grant, which was kept in fixed deposit - Decided against Revenue.
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