TMI Blog2017 (5) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... er trust namely Shri Krishan Parnami Manav Sewa Trust, Hisar, However, the applicant trust himself has not made any such expenditure for a charitable purpose, which is covered u/s. 2(15) of the Income Tax Act. We also note since the Applicant was not qualified for exemption u/s. 12AA of the I.T. Act, 1961 and its application for registration u/s. 12AA was rejected by the Ld. CIT(E) vide his order dated 7.5.2015. And against the Ld. CIT(E)’s aforesaid order, the Assessee appealed before the Tribunal and the Tribunal while dealing in assessee’s own case has set aside the issue in dispute to the file of the Ld. CIT(E) to decide the issue afresh and at present the Assessee has not been exempted u/s. 12AA of the I.T. Act, therefore, the Appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s all the necessary conditions for approval of exemption as laid down in Section 80G(5)(i), (ii), (iii), (iv) and (v) of the Act. The application has been rejected only on surmises and conjectures and on whimsical grounds and irrelevant considerations. 4. That Ld. CIT(E) has not specified in impugned order dated 7.5.2015, condition of S. 80G(5) of the Act being not satisfied leading to withholding of approval under section 80G(5)(vi) of the Act and as such order is liable to be set aside. 5. That Ld. CIT(E) erred in rejecting application for grant of approval under section 80G(5)(vi) of the Act because Appellant Trust applied income for giving donation to another established charitable organization, the finding is against law re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining on the date of dissolution of this Trust shall under no circumstances be distributed among the Trustees, but the same shall be transferred to another Public Charitable organization whether registered or unregistered. There is no such clause in the trust deed that the assets and properties of the trust shall be considered for transfer to any other society / trust with identical aims and objects. The Ld. CIT(E) observed that on perusal of the Income Expenditure account of the applicant trust shows that the main expenditure was incurred by the applicant by way of donation to another trust namely Shri Krishan Parnami Manav Sewa Trust, Hisar, However, the applicant trust himself has not made any such expenditure for a chartiable purpose, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of ₹ 37 lacs during 22.10.2014 to 31.3.2015; details of inter trust donations made in kind to Sh. Krishan Pranami Bal Sewa Ashram, Hisar at ₹ 32,79,951/- as per income and expenditure account; ITR-7 of assessment year 2015- 16; Ack. Dated 31.8.2015 of AY 2015-16; ITR-7 of AY 2016-17 and Ack. No dated 2.8.2016 of AY 2016-17. Ld. A.R. of the Assessee reiterated the contents of the grounds of appeal by stating that rejection of claim of approval under section 80G(5)(vi) of the Act is on invalid footings and erroneous consideration as reasons pointed out for rejection are not valid; the application of the assessee was rejected only on surmises and conjectures and on whimsical grounds and irrelevant consideration. He further stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified modes as provided under sub-section (5) of Section 11 of the Income Ta Act. We further note that before the Ld. CIT(E) the Applicant Trust has submitted that in clause 24 of the Trust Deed the trustees unanimously shall have the power to dissolve the Trust in case if it is so deemed expedient and necessary and in such eventuality, the assets remaining on the date of dissolution of this Trust shall under no circumstances be distributed among the Trustees, but the same shall be transferred to another Public Charitable organization whether registered or unregistered. There is no such clause in the trust deed that the assets and properties of the trust shall be considered for transfer to any other society / trust with identical aims an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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