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TMI Blog2014 (3) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... stant appeal is whether approval u/s. 80G(5)(vi) of the Act stands rightly denied to the assessee or not. The assessee is a charitable trust, constituted by a trust dated 16/01/2006 (PB page 8-18), with the main objects of relief to the poor; medical relief; education; and housing. It is also registered u/s. 12A(a) of the Act as a charitable trust vide certificate dated 09/05/2008 (PB page 23). Application in the relevant form for grant of certificate u/s. 80G was moved on 27/6/2011. The competent authority, being the DIT(E), on the basis for the income and expenditure account and balance-sheet for the preceding three years observed that no charitable activity was being pursued by the assessee. The entire donation received, which was toward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, inter alia, in respect of sums paid to any fund or institution specified in section 80G(2)(a). Section 80G(2)(a)(iv) is a general clause, which reads as: 'any other fund or any other institution to which this section applies' Section 80G(5) enlists the conditions, fulfillment of which are necessary for any institution or fund to qualify u/s. 80G(2)(a)(iv). Section 80G(5)(vi) further provides that in respect of a donation made after 31/03/1992, the donee institution or fund should be approved by the Commissioner in accordance with the rules made in this behalf. Rule 11AA, in turn, postulates the satisfaction of the Commissioner of the conditions laid down in clauses (i) to (v) of section 80G(5). The Commissioner is also required to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reof. Sub-clause (v) is toward advancement and promotion of any charitable trust or for general public utility. The trust fund is defined to include donations received by the trustees, including toward the corpus of the trust and, further, authorize them to utilize the same, i.e., the trust fund, for any of the objects specified in sub-clauses (i) to (v) of clause 4(b). The donations to other charitable institutions by the assessee would thus be in satisfaction of clause 4(b) of its objects and, further, an application of income u/s.11(1)(a). The assessee has provided names of the funds/institutions to which donations have been given by it (PB page 22), and which includes well established names, i.e., of organizations involved in charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sides, would lead to the inference of the same being not corpus funds, i.e., in essence, and thus not entitled to exemption u/s. 11(1)(d). That is, would qualify for exemption only subject to application u/s. 11(1)(a), and toward which the assessee has in fact cited case law. The same would further be a subject matter of consideration at the stage of assessment and not at the time of grant of approval u/s. 80-G(5). 4. In view of the foregoing, we have no hesitation in, accepting the assessee's case, directing the competent authority to grant approval u/s. 80G(5)(vi) thereto, vacating his findings in the matter. We direct accordingly. 5. In the result, the assessee's appeal is allowed. Order pronounced in the open court on February 21, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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