TMI Blog2012 (9) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... ion u/s. 12AA and approval u/s. 80G(5)(vi) of the Income-tax Act, 1961 was refused on the reason that the assessee has not carried on any tangible charitable activities. Further, the assessee's main object is to conduct research in different fields and the area of operation is worldwide. Moreover, the assessee did not maintain books of account. 3. We have heard both the parties and perused the material available on record. In our opinion, at the time of registration u/s. 12AA, the DIT(E) has to satisfy himself about the genuineness of the activities of the trust and has to see whether it falls under the purview of provisions of section 2(15) of the Act. For this purpose he can cause necessary enquiry. Before us the learned AR submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to such income, if-- (a) the institution or fund maintains separate books of account in respect of such business; (b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and (c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business; (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... established for charitable purposes for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009; and (b) approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009. As per sub-clause (vi) of sub-section (5) of section 80G, for recognition, the trust is required to be approved by the Commissioner in accordance with the Rules made in this behalf. The Rules are Rule 11AA prescribed in this regard. As per Rule 11AA, the assessee is required to make an application in Form No.10G. The application shall be accompanied by the following documents:- (1) Copy of Registration granted under section 12A or copy o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-clause (ii) of sub-section (5) of section 80G, the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of its income or assets for any purpose other than a charitable purpose. Admittedly there is no clause or rule governing the institution which contains any provision for the transfer or application of its income or assets for any purpose other than a charitable purpose. The only object of the assessee trust is for carrying out such object of charitable nature within the definition of Charitable purpose as specified in section 2(15) of the Act. The condition prescribed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 80G of the Act was denied by the DIT (E) only on the reason that the object clause contains the clause that the activities of the trust and its objects will not be confined to India. To grant approval under section 80G of the Act, the DIT (E) can examine whether or not the conditions set out in section 80G(5) (i) to (v) are satisfied. If the assessee has satisfied the above conditions, there is no reason to deny the approval under section 80G of the Act by the DIT (E). 10. In the circumstances, we direct the DIT (E) to consider the amendment and decide the issue in accordance with law. 11. The reason for denial of registration u/s. 12AA and approval u/s. 80G(5)(vi) by DIT(E) is not justified. We, therefore, remit the entire i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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