2016 (3) TMI 595

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....application dated 05.08.2009 was made for registration under Section 12A and for grant of recognition under Section 80G of the Income Tax Act, 1961 (for short 'the Act'), which was transferred to the jurisdictional CIT, Gulbarga on 22.09.2009, who on 24.02.2010 passed separate orders, one granting registration under Section 12A of the Act and other directing the assessee to furnish compliance under Section 80G(5)(i) of the 'Act'. The reply submitted by the assessee on 27.02.2010 recorded the philanthropic activities of the trust, which was not commenced as on the date of making application for grant of approval under Section 80G5(iv) of the Act and therefore, was unable to annex the accounts in Form 10A or Form 10G. In the hearing before th....

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....the conditions stipulated under the 'Act' were not satisfied. 3. The assessee trust questioned the order of the CIT, Gulbarga in ITA No.853/Bang/10 before the Income Tax Appellate Tribunal "A" Bench, Bangalore (for short 'the Tribunal') where the assessee representative advanced the plea that the application for grant of approval under Section 80G of the Act when filed on 05.08.2009, in terms of rule 11 AA(6) of the rules was barred by limitation to pass an order and therefore recognition under Section 80G of the Act was deemed to have been granted by the revenue. 4. In opposition the departmental representative supported the order of the CIT, Gulbarga and submitted that the applicant trust was at liberty to file an application for grant ....

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....e the application for grant of recognition as soon as it is formed and the revenue was bound to examine the documents, which are made available at that point of time and arrive at a decision for grant of recognition under Section 80G of the 'Act'. 7. On the facts 'Tribunal' noticed that the assessee commenced activity by providing notebooks to school children and publication of development of the region and in order to support the activity was only by way of flow of finance, which can happen on receipt of donations. Recognition under Section 80G of the 'Act', as observed by the Tribunal will be one of the factors to induce donors to donate funds to trusts, to encourage such kind of activity by the trust for the development of the society a....