2010 (2) TMI 983

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....s 2009-10. The appeal is directed against the order of the Director of Income-tax (Exemptions), Bangalore, dated August 31, 2009. The assessee-trust was enjoying the benefits available under section 80G of the Income-tax Act, 1961. As necessitated, the assessee filed its application in Form No. 10G before the Director of Income-tax (Exemptions), seeking renewal of recognition under section 80G.....

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....ction 80G(5)(ii) ; (ii) That the said officer has erred in not recording his satisfaction in terms of rule 11AA(5) to show how the requirements of section 80G(5)(ii) were not fulfilled ; and (iii) That he has erred in his findings that the assessee has not carried out any charitable activity and that the Director of Income-tax (Exemptions) has erred in not appreciating the crucial fact that ....

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....emptions), to convince him that the assessee had in fact carried out charitable activities during the relevant period. In fact, the crucial test of granting exemption under section 11 of the Income-tax Act, 1961, as well as recognition under section 80G is that the assessee should have been carrying on charitable and/or religious activities. The law otherwise stated in sections 11, 12, 80G etc., i....

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....e nature of activity carried on by the assessee was to construct a building and let it out for rent. The relationship is that of a landlord and tenant. The rental income was earned by the assessee not as a part of its charitable activity but in its status as a landlord. The assessee having let out the building to another educational institution does not mean that the assessee is a partner in the e....