TaxTMI 
TaxTMI 
2010 (11) TMI 933
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Income Tax (Exemption), Delhi has erred in law and facts in rejecting the application filed by the association for renewal of Exemption u/s 80G of the Income Tax Act, 1961 for the year w.e.f. 1st April, 2009. 2. That the learned Director of Income tax (Exemption), Delhi has not appreciated the main objects of the Mayo College Old Boys Association, being a very old and established association formed for charitable purpose and carrying out various activities in the field of Education, etc. 3. That the learned Director of Income Tax (E) has rejected the application without understanding the essence/logic of Sec 2 (15) of the Income Tax Act, 1961 and concluded his finding without verifying the complete facts of the case. 2. The assessee i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ial expenditure on this activity only. The Director of Exemption has also observed that in earlier years also the assessee had been carrying out such activity only. According to Ld. DIT (E), the assessee thus, is engaged in the activity of commercial nature and activity of the assessee is not covered by Section 2(15), hence, it was not a charitable activity and even if it is held that the assessee is engaged in the activity of general public utility, then also, the said activity does not fall within the ambit of Section 2 (15) and, in the circumstances, he has held that activities of the society no longer falls under charitable head, therefore, the income of the assessee is not exempted from assessment year 2009-10 onwards and, in thi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n u/s 11 of the Act, even if it is not approved u/s 10 (23) relating to exemption from tax of sports associations and institutions having their object as, the promotion, control and regulation and engagement of specified sports and games. In the alternative, it was pleaded by Ld. AR that grant of renewal of exemption u/s 80G, during the subsistence of 12AA cannot be denied on the ground that the assessee does not carry on any charitable activity. For this purpose, he has placed reliance on the following decisions:- "NN Desai Charitable Trust vs. CIT 246 ITR 452 (Guj) : authority examining the question whether a fund or institute is eligible to be certified for the purpose of Section 80G is not to act as an A.O.; once the applicant was reg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to eligibility of income and not to actual computation of income under the Act." 5. He also contended that even otherwise the assessee has made donation of ` 3,50,000/- which clearly falls within the main objects of the assessee and the donation is given for the purpose of education only. He contended that the said donation of ` 3,50,000/- was advanced to the following parties and vide letter dated 9th February, 2010 it was informed to Ld. DIT (E) and copy of such letter is placed at page 11 and 12 of the paper book. "Sl. No. Beneficiary Chq. No. Amount (in Rs.) 1. Mayo College Ajmer-305008 434287 1,00,000 2. Sisters of the People, Lajpat Bhawan, Lajpat Nagar New Delhi - 110 024 434280 1,00,000 434284 1,00,000 3. Chaudhari ....