TMI Blog2010 (11) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... table status granted to the assessee by the certificate issued u/s 12A has been withdrawn. The Ld. DIT (E) is directed to grant the renewal to the assessee u/s 80G - appeal filed by the assessee is allowed. - ITA No.2010/Del/2010 - - - Dated:- 19-11-2010 - SHRI I.P. BANSAL AND SHRI K.G. BANSAL, JJ. For the Appellant : Shri R.S. Adlakha, Advocate For the Respondent : Shri N.K. Chand, Sr.DR ORDER PER I.P. BANSAL, JUDICIAL MEMBER This is an appeal filed by the assessee. It is directed against the order dated 24th February, 2010 passed by the Director of Income-tax (Exemptions), Delhi u/s 80 G (5) (vi) of the IT Act, 1961 read with Rule 11AA of Income-tax Rules, 1962. The grounds of appeal read as under:- 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter is placed at page 7 of the paper book. The said exemption u/s 80G was renewed for the period from 16th April, 2003 to 31st March, 2006 vide letter dated 14th October, 2003, copy of such letter is filed at page 8 of the paper book. Further, renewal u/s 80G was made vide letter dated 31st October, 2006 for the period from 1.4.2006 to 31st March, 2009 and copy of such letter is placed at page 9 of the paper book. Again, renewal application was filed on 15th September, 2009 wherein the assessee has sought the exemption u/s 80G in response to which Ld. Director of Income-tax (Exemption) has denied the claim of the assessee for renewal of exemption u/s 80G. The reason for declining such request is that the assessee has received income unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court of Delhi 321 ITR 73 (Delhi) that It is hardly possible for a charitable trust to work with no source of income as long as the user of that money is charitable, then the exemption has to be granted merely because some remuneration was taken by the petitioner foundation for undertaking these projects would not alter the character of these projects. The amended definitions of charitable purpose would not alter these positions. 4. He contended that the activity carried on by the assessee fall within the definition of Section 2 (15) and he also relied upon the Circular No.395 dated 24th September, 1984 to contend that the object of general public utility also falls within the ambit of charitable purpose and, therefore, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A by itself is a sufficient proof that the institution is created or established for charitable/religious purposes. Gaur Brahman Vidya Pracharini Sabha vs. CIT (2010) 129 TTJ (Delhi) 627 : It was held that when the assessee trust was granted registration u/s 12AA, it is testimony to the fact that the trust is established for charitable purposes. Assessee society formed for the purpose of establishing educational institution, not for any particular community or cost, having been granted registration under section 12 AA and all the conditions laid down in clauses (i) to (v) of subsection 5 of section 80G having been fulfilled assessee s society is eligible for registration under section 80G(5)(vi) not withstanding the fact that it is ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not carry out any charitable activity, hence, his claim for renewal u/s 80G was rightly rejected by the DIT (E). 8. We have carefully considered the rival submissions in the light of the material placed before us. The certificate granted to the assessee u/s 12A treating it as charitable institution is subsisting and has not been shown to have been withdrawn till date. If it is so, then, in our considered opinion, renewal of exemption u/s 80G(5) could not be denied to the assessee and the case relied upon by Ld. AR and reproduced in the above part of this order fully supports such conclusion. Therefore, we find no justification in rejection of the claim of the assessee unless it is shown that the charitable status granted to the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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