9911796707
TMI Blog2012 (9) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... . The ld. Director of Income-Tax (Exemption) [in short DIT (E)] observed that the trust has been formed for various objects which are detailed in the Trust Deed dtd. 5-7-2006 and the trust has been accorded approval u/s 12A vide order dtd. 27-9-2007. He further observed that from the perusal of the details filed, it was noted that the applicant trust has not carried out any charitable activities during the last three years and has not incurred any expenditure on the same. Accordingly, a show cause letter dtd. 30-9-2009 was issued to the applicant trust to show cause as to why the application u/s 80G should not be rejected. In response, the assessee filed its reply vide letter dtd. 28-3-2011 as under (para 3 of the order) : "The main object ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lying on the decision in the case of Madani Musafir Khana Welfare Society v. CIT (2003) 264 ITR 357 (Patna) and Vishwa Budha Parishad v. CIT (2003) 264 ITR 481 (Patna), rejected the application dtd. 31-3-2009 filed by the trust for approval u/s 80G of the Act. 3. Being aggrieved by the order of the DIT(E), the assessee is in appeal before us challenging in all the grounds the rejection of application for grant of certificate u/s 80G and not allowing full and proper opportunity of being heard to the applicant trust. 4. At the time of hearing the ld. counsel for the assessee submits that there is no dispute that the applicant trust has been granted approval u/s 12A of the Act vide order dtd. 27-9-2007 and also granted certificate u/s 80G fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 80G dtd. 24-3-2008 for the period 30-11-2007 to 31-3-2009. The assessee's application for grant of certificate u/s 80G was refused by the DIT(E) on the ground that no charitable activities had been carried out and no expenditure on the object of the trust has been debited by the trust. According to him, it is a clear-cut case of contravention of the benevolent provisions of section 80G of the Act. However, we find that it is not the case of the Revenue that assessee has not satisfied all the conditions laid down in Clauses (i) to (v) of sub-section (5) of section 80G of the Act. Merely because the assessee has not carried out any charitable activity during the last 3 years does not mean that the assessee is not entitled to the certifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urposes other than charitable purpose or not for construction of houses for poor and needy people as per object of the trust, both the decisions relied on by the learned DIT(E) are distinguishable and not applicable to the facts of the present case. 8. In this view of the matter and keeping in view the trust has been accorded approval u/s.12A and the trust has been formed for various objects of the public utility which are for the benefit for the public in general, we are of the view that learned DIT(E) has erred in not granting the approval u/s.80-G of the Act to the applicant trust. He is, therefore, directed to grant approval u/s. 80-G of the Act to the Trust. The grounds taken by the assessee are, therefore, allowed. 9. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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