TaxTMI 
TaxTMI 
2014 (5) TMI 434
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....se is whether the approval u/s.80-G stood rightly denied to the assessee or not, i.e., in law and in the facts and circumstances of the case. This is the second round before the Tribunal; it deciding the matter in the first round thus (in ITA No. 4151/Mum/2010 dated 08/10/2010/copy on record): '5. We have considered the rival submissions carefully and find that it was stated before us that assessee has already constructed a School and Hospital which were handed over to the Government. This shows that the assessee had carried out charitable activities. 6. Therefore, we set aside the order of the learned DIT(E) and remit the matter back to his file for reconsideration of the issue. If assessee has really constructed the School and Hos....
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....on, with a view to encourage charitable activity. No charitable work having been admittedly undertaken since 01/04/1997, i.e., up to 04/11/2009, the date of the application, the genuineness of the trust itself is in doubt. Accordingly, the approval or its renewal was denied. Aggrieved, the assessee is in appeal. 3.1 Before us, the assessee's case was that the limited issue before the ld. DIT(E) in the set aside proceedings was as to if the assessee had indeed constructed the School and Hospital and, further, handed it over to Government and a charitable trust respectively for running, so that, where so, it be granted approval under sec.80-G. The Revenue had, accordingly, exceeded its jurisdiction in examining other aspects of the matter; i....
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....to another for running though. Accordingly, subject to verification qua the same, approval u/s. 80-G ought to be granted to the assessee - nothing more, nothing less. It was certainly open for it (the Revenue) to bring facts on records, disturbing the finding of the appellant being not a genuine trust. We are therefore not prepared to accept the assessee's claim that the Revenue was, post the order by tribunal, required to proceed with closed eyes in-as-much as it could not take cognizance of any fact other than assessee having built a school and hospital in the past. Its' order, or any other judicial order for that matter, is required to read as whole, holistically, and not pedantically or in fact not even in a manner as one would read a ....
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....any profit element or otherwise commercial aspect to the transaction? We say so as, as is apparent, this is all that the assessee has undertaken in the past, and throughout the many years of its existence. Mobilizing funds for and actually constructing buildings, even if it is a school building or a hospital, could only be regarded as charitable activity if there is actually a user of the building as a school or hospital, else not. All the Revenue, however, harps on in the set-aside proceedings, is the nonundertaking of any charitable work by the assessee-trust for the several years preceding its application u/s. 80-G; something, which the tribunal is already aware of in-as-much as the original order under section 80-G (5) dated 10/03/2010....
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....aritable work could rather itself be a reason for not undertaking charitable activity. Why, the impugned order itself states of s. 80-G having been granted in the past to enable the assessee undertake its project of construction of a school. It is perhaps for this reason that the law has provided definite, objective criteria for accord/denial of approval, i.e., in terms of the conditions of clauses (i) to (v) of section 80-G(5), non-fulfillment of which has not been alleged or claimed by the Revenue. True, a finding as to non-genuineness could also operate to deny approval, but the nonundertaking of charitable activity cannot by itself lead to the finding of the institution being not genuine, particularly considering that registration as a ....
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....ng hearing, registration under section 12A/12AA is a prerequisite for the grant of approval under section 80-G, which could be withdrawn under section 12AA (3). In fact, as afore-noted, according registration or not withdrawing the same, as the case may be, is itself inconsistent with the non-grant of approval under section 80-G in-as-much as a satisfaction as to the genuineness or otherwise is also a criteria for according or, as the case may be, withdrawing registration. In fact, any authority granting an approval has an inherent power to withdraw it if the condition/s of the approval are no longer met or stand violated at any stage. Section 292C, brought on the statute with effect from 01/10/2009, specifically provides for power of such ....