Appeal granted for 80G(5) approval under IT Act - Conditions must be met

The Tribunal allowed the appeal, directing the CIT(Exemption) to grant approval u/s 80G(5) of the IT Act, 1961 to the appellant. The decision emphasized fulfilling conditions for approval and commencing activities towards stated charitable objects.

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Issues Involved:
Appeal against rejection of exemption u/s 80G(5) of the IT Act, 1961 by CIT (Exemptions), Jaipur.

Detailed Analysis:

Issue 1: Grounds of Appeal
The appeal was filed by the assessee against the order of CIT (Exemptions), Jaipur dated 16.07.2015. The grounds of appeal included errors on facts and in law in rejecting the application for exemption u/s 80G(5) of the IT Act, 1961, and holding that the assessee had not started activities as per the object.

Issue 2: Background and Applications
The company was incorporated under the Companies Act, 1956, with the main object of establishing a hospital and medical college. The assessee applied multiple times for registration u/s 12A and approval u/s 80G(5)(vi), facing rejections based on various grounds such as not carrying out charitable activities and not being registered u/s 12AA.

Issue 3: CIT's Rejection and Assessee's Arguments
The CIT rejected the application for exemption u/s 80G(5) citing that no activities had been started as per the objects, with only capital expenditure activities being carried out. The assessee argued that all requirements for approval were fulfilled, steps were taken towards implementing the objects, and the CIT's observation on the lack of activities was incorrect.

Issue 4: Tribunal's Analysis and Decision
The Tribunal noted the appellant's previous applications and the reasons for rejection by the CIT. It emphasized that registration under section 12AA indicated the genuineness of the objects. The Tribunal found that the activities undertaken by the appellant towards establishing the hospital and medical college justified the approval under section 80G(5). It distinguished a previous case and directed the CIT to grant approval under section 80G(5) to the appellant.

Conclusion:
The Tribunal allowed the appeal filed by the assessee, directing the CIT(Exemption) to grant approval u/s 80G(5) of the IT Act, 1961 to the appellant. The decision highlighted the importance of fulfilling conditions for approval and commencing activities towards the stated objects for charitable purposes.

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