TaxTMI 
TaxTMI 
2018 (12) TMI 699
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....red to as "the Tribunal") contending that it involves following substantial question of law to be adjudicated by this Court :- "Whether on the facts and in circumstances of the case and in law, the ld. ITAT is justified in allowing approval u/s 80G(5) notwithstanding that the applicant has not commenced any charitable activity as per its objects in last three years?" The factual matrix within the precincts of proposed question of law unfolds as under :- The respondent assessee is a trust, which applied for requisite approval under Section 80G(5)(vi) of the Act of 1961 on 30.03.2017. Respondent's application came to be rejected by the competent authority, namely Commissioner of Income Tax (Exemption), vide its order dated 21.0....
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....would be contrary to the very purpose and object of Section 80G of the Act of 1961 and that the Commissioner (Exemption) had rightly rejected petitioner's request for grant of approval. He submitted that in the present set of facts, the question as proposed deserves to be answered in revenue's favour and the order of the Tribunal deserves to be reversed. We have heard Mr. Bissa and perused the material available on record. However, insistence of learned counsel for the revenue could not persuade us to take a view different than the one taken by the Tribunal. According to us, an assessee can neither be expected to spend higher amount than its income nor can it be expected to elongate its feet beyond its blanket. The amount of Rs. 41,00....
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....shall not apply in relation to such income, if - (a) the institution or fund maintains separate books of account in respect of such business; (b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and (c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business;]] (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provisi....
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.... granted under section 12A or copy of notification issued under section 10 (23) or 10 (23C) ; (ii) Notes on activities of institution or fund since its inception or during the last three years, whichever is less; (iii) Copies of accounts of the institution or fund since its inception or during the last three years, whichever is less. (3) The Commissioner may call for such further documents or information from the institution or fund or cause such inquiries to be made as he may deem necessary in order to satisfy himself about the genuineness of the activities of such institution or fund. (4) Where the Commissioner is satisfied that all the conditions laid down in clauses ( i ) to ( v ) of sub-section ....