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TMI Blog2019 (5) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... and Guru Nanak Institute of Management" and that its stated aims and objects were to promote and develop Education, Employment, Science & Technology: to establish school(s) colleges, Institutions, University, Charitable Hospitals and other institutions, Agriculture and allied Research Centres including organic farming, Entrepreneurship development, Educational Organizations and opening hospitals for welfare of the society; to collaborate and cooperate with other professional bodies, Societies and with educational and research institutions having similar objects. Thereafter necessary information was called for to examine the assess/applicants claim for approval u/s 80G(5) of the Act and the Ld.CIT(E) found that it was not a fit case for granting approval for the following reasons: a) That the applicant/assessee was having an assured fees structure and taking any other receipt apart from what has been allowed by regulating agencies would have a bearing on its charitable character. b) that it had a large asset base which did not justify taking donation ,having never sought donations in the past. c) That the applicant accepted fees in cash which was not deposited in bank. d) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the contention o the applicant that it intends to construct Vridh Ashram for whom it has assured donations by NRIs and corporate group under CSR is not acceptable in the absence of any confirmations from the NRI concerned and ii: at all the contention of the applicant is accepted then also applicant is not legally entitled to take donations from outside India in the absence of any FCRA clearance/registration, it's also clear that opening of Vridh Aashram is not as per the objects specified in the Memorandum of the applicant trust. The assessee has claimed that it is in the process of updating its memorandum to include this as an object, In the present however, the absence of the object to open a Vridh Aashram impinges on the quest for attaining approval, for exemption of donations. Moreover the same would also entail a re-look into registration granted earlier u/s 12AA as per the provisions of the Act. Moreover the claims that one NRI. who is having his ancestral roots in the area visited Us campus and showed interest in opening of a. Vridh Aashram on the vacant land of the applicant trust are not backed up by any documentary evidence. This intention of the applicant is beyon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income. Thus assessee has complied with the amendment in law as on 01.04.2015. 4. That the objection of the CIT (Exemption) as per Para 6 of the order with regard to the purpose of seeking approval after the gap of 10 years is bad in law as no time limit has been prescribed under law for application and query regarding the same was raised from the assessee. 5. That the objection of the CIT (Exemption) with regard to non submission of assurances from corporate sector and NRl donees is devoid of any valid reasons and which is not a requirement for exemption u/s 80G granting. 6. That the denial of registration U/s 80G is against the facts and circumstances of the case. 7. That the appellant craves for permission to add, delete or amend the grounds of appeal before or at the time of hearing of appeal." 5. At the outset it was admitted by the Ld. counsel for assessee that all the grounds except ground No.6 were argumentative and, therefore, only ground No.6 was to be taken up for adjudication. Thereafter the Ld. counsel for assessee contended that none of the reasons given by the CIT(E) were valid for denial of approval u/s 80G(5)(vi) of the Act. It was pointed out that only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 and 12 2[* * *] 3[4[***]] 5[or clause (23AA)] 6[or clause (23C)] of section 10 : [Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation 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 any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments or information from the institution or fund or cause such inquiries to be made as he may deem necessary in order to satisfy himself about the genuineness of the activities of such institution or fund. (4) Where the Commissioner is satisfied that all the conditions laid down in clauses (i) to (v) of sub-section (5) of section 80G are fulfilled by the institution or fund, he shall record such satisfaction in writing and grant approval to the institution or fund specifying the assessment year or years for which the approval is valid. (5) Where the Commissioner is satisfied that one or more of the conditions laid down in clauses (i) to (v) of sub-section (5) of section 80G are not fulfilled, he shall reject the application for approval, after recording the reasons for such rejection in writing : Provided that no order of rejection of an application shall be passed without giving the institution or fund an opportunity of being heard. (6) The time limit within which the Commissioner shall pass an order either granting the approval or rejecting the application shall not exceed six months from the [end of the month in] which such application was made : Provided that in comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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