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2018 (11) TMI 1919 - KARNATAKA HIGH COURTRenewal of approval u/s 80G - Commissioner held that there is an absence of charitable activity - revenue contends that what is being used by the assessee towards the object of the Trust is very miniscule and most of the income that is used is only as a result of letting-out of the building, for business purposes, thus it is not the object of the Trust at all. - HELD THAT:- The consideration of these factors when an application for renewal has been made cannot be the considerations before the authority. The only condition that requires to be fulfilled for the purposes of seeking renewal are as specified under Section 80-G(5)(ii) and the clauses narrated therein. That none of the clauses in Section 80-G(5)(ii) would be said to be applicable herein. It only postulates that any income derived from the charitable trust may be used for charitable purpose. Therefore, the rejection of the application is inappropriate. However, we are of the considered view that this consideration can only be made, during the assessment proceedings. The question whether renewal is justified or not, is not necessary to be considered at this stage. The applicability of the income of the assessee whether it is for charitable purposes or not are all questions of fact and necessarily can be gone into by the assessing authority at the time of assessing the income of the assessee. Therefore, it is needless to state that the assessing authority shall look into all the material placed in order to ensure that the income is used for a charitable purpose in accordance with law. Substantial question of law is answered by holding that the Tribunal was not right in law in holding that the appellant Trust was not eligible for renewal for approval under Section 80-G - order of the Tribunal is set aside - Decided in favour of assessee.
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