TMI Blog2011 (10) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... pproval under Section 80G of Act and, therefore, all the conditions of Section 80G(5) of the Act are fulfilled in the present case and, therefore, the trust was eligible for registration under Section 80G(5)(vi) of the Act. - Income-tax Appeal No. 820 of 2010 - - - Dated:- 12-10-2011 - MR.JUSTICE HEMANT GUPTA, MR.JUSTICE G.S.SANDHAWALIA, JJ. Present: Mr. Tejinder K. Joshi, Advocate for the appellant. G.S.SANDHAWALIA, J. The present appeal is directed against the order dated 29.1.2010 passed by the Income Tax Appellate Tribunal, Delhi Bench 'F', New Delhi (hereinafter referred to as the Tribunal ) wherein the ITA No.4485/Del/2009 filed by the respondent was allowed and the Tribunal while allowing the appeal directed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to as the Act ) and rejected the claim of the society. On appeal filed by the respondent-society, the Tribunal has noticed the income in the hands of the assessee and that the assessee is entitled for depreciation and reproduced the aims and objects of the society to hold that the assessee has incurred expenditure for construction of school building during said financial years and for acquiring the bus for transportation of the children and held that the said activity was within the aims and objects of the assessee's educational society and if the depreciation and capital expenditure is deducted out of the gross receipt shown in the chart reproduced by the CIT, the surplus in the hands of the society comes to a negative figur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Clause (vi) of sub-section (5) of Section 80G should be in Form 10G and the following documents are necessary as per clause (2) of the said Rule. (i) Copy of registration granted under section 12A or copy of notification issued under section 10(23) or 10(23C); (ii) Notices on activities of institution or fund since its inception or during the last three years, whichever is less; (iii) Copies of accounts of the institution or fund since its inception or during the last three years, whichever is less; (3) The commissioner may call for such further documents or information from the institution or fund or cause such inquiries to be made as he may deem necessary in order to satisfy himself about the genuineness of the activitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner society has been regularly allowed exemption under Section 80G and especially where it is registered under Section 12A for charitable purposes then the position has to be sustained and not changed in subsequent years without any sufficient proof that the institution is not carrying its activities in furtherance of its object. The relevant observations of the Division Bench in Sonepat Hindu Educational and Charitable Society s case (supra) are as under:- We have no hesitation in holding that the scope of enquiry by the Commissioner, while dealing with the application under Section 80G(5)(vi) of the Act, extends to eligibility to exemption under various provisions of the Act, referred to in that subsection, but not to actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though cultural activities. (F) To help the pupils develop their inner qualities and spirit of a creative leadership. (G) To obtain money for the aims and objects of the society in the lawful manner such as donations etc. (H) To do all such acts to promote study and research. (I) To do all such things as are identical and conductive for attainment of the above objects or any of them. (J) To employ and/or remove any staff or employee of the school/institution under the control of the society. (K) To act for welfare of the students and to promote extra cultural activities among the students. (L) To receive and/or disburse and/or invest and arrange for safe custody of the funds coming in the hands of the society. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... once exemption had been granted under Section 12AA of the Act on 29.8.2002 and the same was continuing the CIT was, therefore, not justified in denying the approval under Section 80G of Act and, therefore, all the conditions of Section 80G(5) of the Act are fulfilled in the present case and, therefore, the trust was eligible for registration under Section 80G(5)(vi) of the Act. It is pertinent to notice that in Pinegrove International Charitable Trust's case (supra), the judgment of the Hon'ble Supreme Court in Municipal Corporation of Delhi's case (supra) has been discussed and the Division Bench judgment of Uttarakhand High Court in Queen's Educational Society's case (supra) has not been specifically followed and the Division Bench held t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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