AI Drafter 
TaxTMI 
TaxTMI 
2016 (7) TMI 944
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....s 80G(5) of the IT Act, 1961. He has further erred in holding that assessee has not started the activities as per the object. 2. Briefly the facts of the case are that the assessee was incorporated on 25.05.2010 under the Companies Act, 1956 in the name of "Hemdha Medi Resources Pvt. Ltd.' It was given a license u/s 25 of the companies Act, 1956 on 13.10.2012 by the Registrar of Companies, Rajasthan. Thereafter , its name was changed to 'Hemdha Medi Resources' and a fresh certificate of incorporation consequent upon the change of name was issued on 29.10.2012 by the Registrar of companies, Rajasthan. The main object of the company for which it is incorporated is reproduced as under: 2.1 The Ld AR submitted that an application for regi....
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....he status of working and activities done by it. 2.5 The CIT by perusing sec. 80G(5) r.w.r. 11AA held that at the time of grant of exemption u/s 80G(5), due important has to be given to the activities carried out by the organization and maintenance of accounts. However, no activities has been started by the assessee as per the objects and only capital expenditure like acquisition of land, conversion of land, appointment of architect, soil testing etc. is done and in a period of more than five years, assessee could not carry out any activity in accordance with the objects of the company. Accordingly, the CIT rejected the application of assessee for grant of exemption u/s 80G(5) of the IT Act, 1961. 2.6 The ld. AR has submitted that Rule....
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....hment of the hospital and medical college, it cannot be said that assessee has not yet commenced any activity. Further, the genuineness of the objects and its activities are not doubted by the CIT. Hence, having granted registration u/s 12AA, there is no reason not to grant approval u/s 80G. Reliance in this connection is placed in case of Hardayal Charitable and Educational Trust vs. CIT (2013) 355 ITR 0534 (All.) (HC). 2.7 The ld. CIT(Exempt.) while rejecting the appellant's application under section 80G(5) has given his findings as under: "On verification of the income and expenditure account it is seen that no activities has been started by the applicant as per the objects. The Company is doing only capital expenditure like acquis....
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....urpose or not. Secondly, it lays down certain additional conditions under clause (i) to clause (v) which are required to be fulfilled. Rule 11AA provides that where the CIT is satisfied that one or more of the conditions specified in clause (i) to clause (v) of section 80G(5) are not fulfilled, he shall reject the application for approval after recording his reasons for such rejection. In the instant case, the appellant has been duly registered under section 12AA which shows beyond any doubt that ld CIT has already verified the genuineness of the objects and its activities are not doubted by the CIT. Hence, having granted registration u/s 12AA, the first condition regarding establishment of institution for charitable purposes is fulfilled. ....
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....arious approvals, clearances etc which the appellant has been complying with. It is critical that as part of fund raising programme for this project, the appellant has sought the approval under section 80G whereby the donations can be accepted for approved purposes and the project can be expedited. The approval under section 80G will thus aid and provide the necessary support in successful completion of the project. In our view, ld CIT (Exemption) was not correct in denying the approval under section 80G(5) to the appellant. 2.10 Further, we have gone through the decision of decision of Coordinate Bench in case of Pearls Educational Institute (Supra). The said decision was rendered in the context of renewal of approval under section 80G ....