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TMI Blog2016 (5) TMI 1510X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 stating that the trust is charging for various workshops undertaken and for laboratory activities and that the expenditure incurred on objects is less than 85% of the receipts. Thus, the AO as well as the JCIT have not recommended the application for exemption u/s.80G of the Act. In view of the above, the Ld.CIT gave an opportunity to the assessee and asked him to produce the books of account, bills and vouchers etc. for verification and the period for which copies of accounts were attached. From the various details furnished by the assessee the Ld.CIT noted that the Trust has incurred expenditure which is less than 85% of the total gross receipts. The Year-wise details are as under : F.Y. Total gross Receipt Expenditure on objects Percentage 2011-12 Rs. 380/- Rs. 3,480/- Deficit 2012-13 Rs. 1,45,523/- Rs. 98,766/- 67.86% 2013-14 Rs. 1,09,692/- Rs. 78,685/- 71.73% 3. He further noted that the trust is charging fees for workshops and for laboratory activities. In view of the above, he rejected the request for exemption u/s.80G holding that the trust does not fulfil the conditions laid down in section 80G(5) of the I.T. Act. 4. Aggrieved with such order of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal in the case of Pujya Shri Jalarambapa Ane Matushri Virbaima Charitable Trust Vs. CIT vide ITA No.249/Rjt/2014 order dated 13-05- 2014 he submitted that the Tribunal following the decision of Hon'ble Punjab & Haryana High Court in the case of CIT Vs. O.P. Jindal Global University held that recognition u/s.80G(5) cannot be refused on the ground that assessee has failed in making expenditure to the extent of 85% of its income. Referring to the decision of the Pune Bench of the Tribunal in the case of B.P.H.E. Society Vs. ITO (Technical-I) vide ITA No.111/PN/2010 order dated 30-08-2011 he submitted that the Tribunal in the said decision has held that the Commissioner is to examine the application of the assessee seeking recognition u/s.80G. He is not required to Act as assessing authority and decide upon the claim of the assessee in respect of its assessment of income. The actual assessment of the assessee and its actual liability to tax are matters to be decided only in the assessment proceedings. Similar view has been taken by the Pune Bench of the Tribunal in the case of Shikshan Prasarak Mandali Vs. CIT reported in 117 TTJ 337 and in the case of Shri Krishna Kirpa Gausha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortion of the aforesaid judgment in the case of O.P. Jindal Global University (supra) is as under:- "13. In ITANo.701 of 2010 titled CIT v. Surya Educational & Charitable Trust [2011] 203 Taxman 53/15 taxmann.com 123 (Punj & Har.) it has been held by this court that at the stage of registration under Section 12AA of the Act, the extent and nature of activities are not required to be examined. That question is required to be examined in assessment proceedings. The Court observed as under: "Therefore, the object of Section 12AA of the Act, is to examine the genuineness of the objects of the Trust, but not the income of the Trust for charitable or religious purposes. The stage for application of income is yet to arrive i.e. when such Trust or Institution files its return. Therefore, we find that the judgments referred to by the learned counsel for the appellant are not applicable to the facts of the present case arising out of the question of registration of the Trust and not of assessment." 14. The issue has been examined that at the stage of registration and for exemption under Section 80G of the Act, the stated object of the trust is required to be examined. Whether the fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cifically observed that , "Once a trust is registered under section 12A, its income from property, which includes donations whether covered under section 11(1)(d) or under section 12 such donations are deemed to be income from property, is not to be included in its total income under section 11 or section 12. The enquiry under section 80G(5) cannot go beyond that.". 8. In sum and substance as per the Hon'ble High Court when the Commissioner is to examine the application of the assessee seeking recognition under section 80G he is not required to act as an Assessing Officer and decide upon the claim of the assessee in respect of its assessment of income. The actual assessment of the assessee and its actual liability to tax are matters to be decided only in the assessment proceedings. 9. To the similar effect is also the decision of our co-ordinate bench in the case of Shikashan Prasarak Mandali (supra). In this case also, the Commissioner of Income-tax denied recognition under section 80G for the reason that the exemption under sections 11 & 12 had been denied to the assessee in the assessment proceedings. As per the Bench, such objection would not ipso facto militate again ..... X X X X Extracts X X X X X X X X Extracts X X X X
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