TMI Blog2023 (12) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... scraps, and sale of finished goods and no such service was rendered to any entity. In any case, it is to be noted that such a service even if it is rendered by the assessee, the same will only be for the preservation of environment and thus is a charitable activity. It is evident from the record that no other objection was raised by the learned CIT(E) while denying the approval u/s 80G of the Act to the assessee. Further, no doubt has been raised by the Revenue regarding the genuineness of the activity conducted by the assessee. Accordingly, we are of the considered view that the assessee satisfies all the conditions for the grant of approval under section 80G - the impugned order dated 30/03/2023 denying the grant of approval u/s 80G of the Act is set aside and the grounds raised by the assessee are allowed. - Shri Amarjit Singh, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Vijay Mehta a/w Shri Ashish Agarwal and Shri Harsh Bafna For the Revenue : Shri Biswanath Das ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee challenging the impugned order dated 30/03/2023, pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacturing of plastic and moulded fibre packaging products. The waste created after the use of these products by the end user when thrown in the environment is collected by various agencies and brought to the premises of Huhtamaki Foundation where, the plastic granules are made from this waste material and again sold as a raw material for production of other plastic products. The assessee has claimed that by collecting the waste material and converting it into raw material is a way of protection of environment and claiming exemption for this purpose. The material produced by the Huhtamaki Foundation is again sold in the market which is a commercial activity. It does not come into the purview of charitable activities. Being aggrieved, the assessee is in appeal before us. 5. During the hearing, the learned Authorised Representative ( learned AR ) by referring to the Trust Deed submitted that the object of the assessee is the preservation of environment and it aims to achieve the same by recycling post-consumer plastic waste. The learned AR further submitted that under section 2(15) of the Act preservation of environment is included within the definition of charitable purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and set up Sustainability facilities for post-consumer use flexible packaging material; b. To work towards creating a system for wastage gathering, segregation and treatment solutions, providing integrated recycling and waste management services, ranging from simple recycling collections to full recycling and waste management solutions; c. To educate address environmental concerns by improving the post-consumer- use flexible packaging waste management eco-system; d. To establish, promote units/plants in processing of post-production and post- industrial recyclable plastic converting such wastes into environmental sustainable products; e. To recycle plastic waste and feed back the same into the supply chain, where it belongs: f. To identify, incubate, and invest in opportunities designed to intercept plastics at the source by collecting, sorting, processing, and recycling waste, so that waste gets diverted from the environment into the recycling value chain, furthering the circular economy: g. To promote, work in the area of connecting the world-wide supply and demand of recyclable plastics; h. To work in the area of changing the perception of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for co-processing (i.e., burning in factories which will result in the generation of hazardous emissions/combustions), ultimately leading to polluting the environment. Therefore, it is the claim of the assessee that in order to preserve the environment, the assessee has installed a recycling plant, which undertakes recycling of the post-consumer MLP waste. 10. In this regard, it is the claim of the assessee that it is associated with a not-for-profit organisation ( Swach PlusSeva Sahakari Sanstha Maryadit ) for the purpose of collection of post-consumer MLP waste and currently, the MLP waste which is recycled by the assessee is collected by rag-pickers engaged by the non-for-profit organisation from Pune as well as other nearby areas. 11. Before proceeding further, it is pertinent to note certain relevant provisions of the Act. As per the second proviso to section 80G(5) of the Act, upon receipt of an application, the Principal Commissioner or Commissioner may call for the documents or information from the assessee or make such inquiries as may be necessary in order to satisfy about the genuineness of activities of the assessee and the fulfilment of conditions laid down in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the assessee from the assessment year 2021-22. Insofar as the provisions of sections 10(23AA) and 10(23C) of the Act are concerned, we are of the view that the same are not relevant to the present case. Accordingly, the assessee satisfies the condition of section 80G(5)(i) of the Act. 13. Further, clause 12 of the aforesaid Trust Deed dated 09/10/2019 provides that the trust is created as an irrevocable trust, and in the event of the trust failing to function for any reason or in the event of the trustees being of the unanimous opinion that this trust should be dissolved and/or amalgamated then same can only be with the trust having objects more or less similar to the assessee or any other public charity trust. Thus the condition of section 80G(5)(ii) of the Act is also satisfied in the present case. It is also undisputed that the assessee is not for the benefit of any particular religious community or caste and it maintains regular accounts of its receipts and expenditure as evident from the paper book submitted by the assessee. Further, it is also undisputed that the assessee is registered under the Bombay Public Trust Act, 1950. Therefore all the conditions as laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciated that in today s world, plastic waste constitutes a major component of the total waste generated and tons of plastic waste go uncollected every day which ultimately flows through streets, roads, rivers, sea, and beaches thereby polluting our environment. In the recent past, various steps have been taken by the Government to stop the usage of single-use plastic. However, even then there are various items in which plastic is used in one form or another and MLP is one such product, which comprises not only ink, fibre, and foil, but also plastic. Pertinently, recycle, reuse, and reduce are important aspects of sustainable development, as they reduce the amount of waste generation. Therefore, we are of the considered view that the assessee is performing an important role by recycling the post-consumer MLP waste, which otherwise would have polluted the environment. Thus, we are of the view that considering the need of the hour to reduce waste, particularly plastic waste for protecting the environment, the various facets of environment protection need to be understood, and the role of various individuals/entities like the assessee in this entire process is required to be appreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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