TMI Blog2012 (9) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... down under Clauses (i) to (v) of sub-section (5) of section 80G read with Rule 11 AA of the Income Tax Rules, 1962 are fulfilled. In the absence of any material to show that the amount received by the assessee has been spent for any other purposes other than charitable purpose or not for construction of houses for poor and needy people as per object of the trust, DIT(E) has erred in not granting the approval u/s 80-G to the applicant trust. He is, therefore, directed to grant approval u/s. 80-G to the Trust - Decided in favor of assessee - I.T.A. No.5725/Mum/2011 - - - Dated:- 11-7-2012 - SHRI DINESH KUMAR AGARWAL AND SHRI B. RAMAKOTAIAH, JJ. Appellant by Shri M. Subramanian Respondent by : Shri Baban D. Patil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g fund account of the balance sheet. The trust had also incurred expenses for construction of the houses and the same were debited in the work-in-progress of the balance sheet. Assessee states that since construction activities takes lot of time, the initial income was not earned and expenses incurred for construction of houses also were debited in the balance sheet, the same could not be shown in the profit and loss account of the trust. The DIT(E) after considering the same, however, observed that admittedly the applicant trust has not carried out any charitable activities during the last three years period which is evident from the certified copy of P L account filed by the assessee. According to the provisions of section 80G of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further submits that the trust has also incurred expenses for construction of house and the same was debited in the work-in-progress of the balance sheet. He further submits that since the construction activities takes lot of time, the initial income was not earned and expenses incurred for construction of houses were debited in the balance sheet account, therefore, the assessee has complied with the provisions of section 80G of the Act and, therefore, the DIT(E) is not justified in rejecting the assessee s application for grant of certificate u/s 80G. He further submits that the decisions relied on by the DIT(E) are distinguishable and not applicable to the facts of the present case. He, therefore, submits that the renewal of approval be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... except the construction of a shopping complex, no other charitable work has been carried out. Further, it was found that advance has been taken from the donors to whom the shop has been allotted, but the same has not been spent for any charitable purposes mentioned in the Memorandum. It has been held that the finding arrived at by the Commissioner was correct and no interference is called for. In Vishwa Buddha Parishad v. CIT (2003) 264 ITR 357 (Patna), the application filed by the trust for renewal of exemption u/s. 80-G(5) of the Act has been rejected after coming to a definite finding that the institution had made very low expenses out of the total donation received under section 80G(5). The Hon ble Patna High Court while dismissing the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
