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2023 (12) TMI 214 - ITAT MUMBAIApproval u/s 80G - denial of claim as assessee is established for spending Corporate Social Responsibility (“CSR”) funds of Huhtamaki India Ltd. and the material produced by the assessee is again sold in the market which is a commercial activity and thus it doesn’t come under the purview of charitable activities - HELD THAT:- The assessee was settled as an irrevocable trust, vide Trust Deed dated 09/10/2019, with the main object to work in the area of preservation of environment. The assessee is registered under the Bombay Public Trusts Act, 1950. Further, the assessee has also received a Registration Certificate for recycling plastic waste issued by the Maharashtra Pollution Control Board under the Environment (Protection) Act, 1986 read with the Plastic Waste Management Rules, 2016. From the perusal of the financial statements of the assessee for the financial years 2020-21, 2021-22, and 2022-23, we find that the assessee earned income only from donations, sale of scraps, and sale of finished goods and no such service was rendered to any entity. In any case, it is to be noted that such a service even if it is rendered by the assessee, the same will only be for the preservation of environment and thus is a charitable activity. It is evident from the record that no other objection was raised by the learned CIT(E) while denying the approval u/s 80G of the Act to the assessee. Further, no doubt has been raised by the Revenue regarding the genuineness of the activity conducted by the assessee. Accordingly, we are of the considered view that the assessee satisfies all the conditions for the grant of approval under section 80G - the impugned order dated 30/03/2023 denying the grant of approval u/s 80G of the Act is set aside and the grounds raised by the assessee are allowed.
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