2018 (6) TMI 455

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....short, "the Tribunal") in I.T.A. No.653(Asr)/2015, claiming following substantial questions of law:- "(i) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is right in directing the approval to be accorded instead of reverting it back for re-examination in the light of its findings? (ii) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is right in granting approval u/s 80G of the Act to the assessee, ignoring the fact that the pooja expenses incurred by the assessee were in violation of section 80G(5B) of the Income Tax Act, 1961? (iii) Whether on the facts and in the circumstances of the case and in law, the ITAT is right in placing relian....

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....ted 11.08.2017, Annexure A.2, the Tribunal allowed the appeal, in view of the fact that the assessee had been granted exemption under Section 12AA of the Act on 30.11.2015 itself and which was still in existence and if there would be any violation, that would be subject to variation/withdrawal by the CIT(E). Hence the instant appeal by the appellant-revenue. 3. We have heard the learned counsel for the appellant-revenue. 4. Learned counsel for the revenue relied upon judgment of this Court in CIT vs. Gulab Devi Memorial Hospital Trust, (2017) 391 ITR 73 to contend that registration under Section 12AA of the Act by itself is not automatic for granting approval under Section 80G of the Act. 5. It would be apt to examine the case repo....

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....aid approval was denied on the ground that the assessee was spending more than 5 per cent of the total receipts for religious purposes as pooja expenses and telecast expenses. The CIT(E) had also accorded approval under Section 12AA of the Act on 30.11.2015 itself as is evident from the order of the Tribunal. The Tribunal had recorded that the assessee had demonstrated that spending more than 5% of total receipts for religious purposes as pooja expenses and telecast expenses was justified. Further, as noticed by CIT(E) in the order dated 30.11.2015 denying approval to the assessee under Section 80G(5)(vi) of the Act, the aims and objects of the assessee as per Memorandum of Association are noticed to be as under:- "i). The main obj....