TMI Blog2010 (4) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... tivities cannot be termed as business activities or commercial activities, because the activities are not carried out for profit motive, Director of IT (Exemptions) directed to grant renewal of exemption under s. 80G of the Act, assessee is allowed - IT APPEAL NO. 15 (HYD.) OF 2010 - - - Dated:- 23-4-2010 - G.C. GUPTA, AKBER BASHA, JJ. Syed Jameeluddin for the Appellant. H. Phani Raju for the Respondent. ORDER Akber Basha, Accountant Member This appeal by the assessee is directed against the order of the Director of IT (Exemptions), Hyderabad dt. 10th Dec, 2009 rejecting the Application of the assessee for renewal of approval under s. 80G of the IT Act ('the Act'). 2. Following are the grounds of appeal taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny activity of rendering any services in relation to any trade, commerce or business, and therefore, it is not hit by the proviso to s. 2(15) of the IT Act. Therefore, the Director of IT (Exemptions) is wrong in holding that the assessee trust is hit by the proviso to sub-s. (15) of s. 2 and is therefore not eligible for renewal of exemption under s. 80G of the Act." 3. After considering the facts and the circumstances of the case and considering the rival submissions, we find that the Director of IT (Exemptions) rejected the application for renewal of exemption under s. 80G of the Act mainly on the basis of the technical defect in drafting of trust deed. In the first part of the sentence in cl. V of the trust deed, it has been stated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a particular religious community. The Tribunal was unable to agree with the view of the Department in this regard and held that so long as there is no expression either in writing or orally, it could not be said that the benefits are expressed to be for the benefits of a particular religious community. 4. The Department did not bring any material on record to show that the assessee trust has carried out any activities outside India or applied its income outside India. In the absence of the same, we find no violation by the assessee trust of ss. 11 and 12 of the Act. Moreover, the issue whether the income was applied in India, is a matter which could be considered at the time of assessment and not at this stage of renewal of exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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