TaxTMI 
TaxTMI 
2011 (10) TMI 459
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....he Tribunal while allowing the appeal directed the Commissioner of Income Tax, Faridabad (for short "the CIT") to grant approval under Section 80G to the assessee. The CIT while rejecting the application of the assessee vide order dated 9.10.2009 had based its order on the ground that respondentsociety which is established on 24.2.2001 and filed an application for renewal/exemption under Section 80G on 15.4.2009 was generating huge surpluses year after year and making capital expenditure for the assets of the school out of this income. It was further noticed by the CIT that the application of funds was to be till 85% and the assessee was permitted to accumulate only 15% of the receipts in normal course and the application of funds during fi....
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....us in the hands of the society comes to a negative figure. Accordingly, it was held that question of intimation in form 10 was not required to be submitted before the CIT and since the assessee was also enjoying exemption under Section 12AA of the Act, the CIT was not justified in denying the approval under Section 80G of the Act. The revenue aggrieved against the said order of the Tribunal has in the present appeal framed the following substantial question of law which in its opinion require adjudication by this Court:- "Whether, on the facts and in the circumstances of the case, the ld. ITAT was right in law in granting approval under Section 80G of the Income Tax Act, 1961 even though the applicant society seeking exemption ....
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....m 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 (iv) 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 ....
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.... to eligibility to exemption under various provisions of the Act, referred to in that subsection, but not to actual computation of Income under the Act, particularly when a society or a trust is claiming exemptions under sections 11 and 12 and not under section 10 of the Act. It needs little emphasis that the enquiry for the said purpsoe relates to whether the applicant is registered under section 12A; whether it is a trust wholly for charitable purposes and whether the income received by it is liable to be considered under section 11 of the Act. The enquiry whether at the end of the previous year, the donor will be able to sustain a claim because of non-fulfillment of some conditions by him would depend at the close of the relevant previou....
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....d to promote extra cultural activities among the students. (L) To receive and/or disburse and/or invest and arrange for safe custody of the funds coming in the hands of the society." This Court in Pinegrove International Charitable Trust Vs. Union of India (UOI) and others (2010) 327 ITR 73 (P&H) has held that where any amount spent on acquiring/constructing capital assets wholly and exclusively for the benefit of society like constructing a new building would be utilisation of the income of the society and if it is done for furtherance of the object of the society. That in the said case a Division Bench of this Court while examining the provisions of Section 10 (23C) (vi) of the Act and after considering the j....