TaxTMI 
TaxTMI 
2019 (9) TMI 945
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.... to grant approval as sought." (B). The applicant came into existence through trust deed which is reproduced below: "This declaration of Trust is made in the city of Delhi on this 27thday of June 2017 by Ms. Lavanya Anirudh Verma D/O Mr. H. Rajamani R/O F-001 Yamuna Apartments, Alaknanda, New Delhi 110019, hereinafter called the EXECUTANT TRUSTEE/ SETTLOR. The expression of the Executant Trustee/ settlor hereinused unless repugnant to the contest hereof shall mean and include her heirs, successors, legal representative, administrators, nominees and assignees. And WHEREAS the Executant trustee/ settlor is desirous to settle a Trust for Charitable purposes and hereby settle a sum of Rs. 1,100 (Rupees One Thousand One Hundred Only) whollyfor charitable purposes and advancement of objects of general public utility for the exclusive benefit of the public without reference to caste or creed or religion and not involving the carrying on of any activities for profit. It is considered expedient to execute a formal deedof Trust specifying the terms and conditions for such administration and also the powers of the Trustees. NOW THIS DEED THEREFO....
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....ATION g) To establish, run, maintain, support or help in the establishment of educational institutions, colleges, libraries, other academic, vocational institutions for public at large and forspread of education in Arts, Science, Commerce, Agriculture and allied fields, Literature, Philosophy, Physical Education, training, or in any other subjects of faculty or for furthering thecause of education and furthering the cause of the beneficiaries. h) To give awards, rewards and recognition and other incentives to deserving candidates i) To provide, give help to poor and meritorious students of either sex either by payment of fees or by providing them books or defraying other incidental expenses by suitable means j) To promote physical culture and education and toassist and promote sports and games. k) Tosupport, maintain, manage and/ or grant aid to schools (formal and non-formal including bridge schools, remedial schools and tuition centres), colleges, technical and/ or otherinstitutions, libraries, reading rooms, lecture halls, studygroups, public museums, galleries or paintings, and/ or other works of art or collection of natural history ....
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....ll costs incidental to the administration and management of the Foundation Properties for the time being. c. The trustees shall be entitled from time to time to open and maintain bank accounts including time deposits in any scheduled bank. Such account may be operated jointly/ severally by the trustees or may be authorized by the trustees. d. To purchase or acquire on lease or in exchange or by way of gift or otherwise any movable or immoveable property and any right or privileges necessary, incidental or convenient for the purposes of the Foundation and to sell, improve, manage, lease, mortgage, rent out or otherwise deal like collaboration with any property of Foundation for furthering the objects of the Foundation and to sign, execute any papers in this connection. e. To borrow, if need be, against the security of theassets or otherwise of the Foundation by way of bank overdraft, loan or otherwise, as may be necessary for the benefit of the Foundation and for more effectively carrying out the objects of the Foundation and to authorize one or more of the Trustees to execute such documents, deed, papers, etc. as may be necessary in connection therewith. ....
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....eemed to form the quorum. All matters at the meeting of the Trustees will be decided by a majority. In case there is an equal division of votes, the Chairperson shall have a second and casting vote. 9) Any resolution may be passed by circulation amongst the Trustees then present in India and the decision or the majority of the Trustees so voting shall be effective and binding as resolution or decision passed at a meeting of the Trustees. 10) On dissolution of the Foundation, its Properties will be transferred to any other public charitable trust having one or more similar objects. IN WITNESS WHEREOF THE EXECUTANT TRUSTEE/ SETTLOR HERETO SETS AND SUBSCRIBES HER HANDS ON THE DAY, MONTH AND YEAR FIRST ABOVE WRITTEN. 3. The applicant filed separate applications in Form Nos. 10A & 10G, each dated 11.10.2017; the former application seeking registration under section 12AA of I.T. Act; and the latter seeking approval under section 80G of the Income Tax Act respectively; in the office of the ld. CIT(Exemption). The applicant also filed copy of financial statement (including receipt and payment account & statement of affairs). Further, the applicant filed copies....
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....be maintained. A copy of such account shall be submitted to the Assessing Officer. A public notice of Registered / Designated Office of the Organization. iii. Separate accounts in respect of profits and gains of business incidental to attainment of objects shall be maintained in compliance to section 11(4A) of the Income Tax Act, 1961. iv. The trust/institution shall furnish a return of income every year within the time limit prescribed under the act. v. The trust/institution should quote the PAN in all its communications with the Department. vi. The registration u/s 12AA of the I.T. Act, 1961 does not automatically confer any right on the doners to claim deduction under section 80G. vii. The certificate cannot be used as a basis for claiming non deduction of tax at source in respect of investments etc., relating to the Trust/Institution. viii. All the Public Money so received including for Corpus or any contribution shall be routed through a Bank Account and such Bank Account Number shall be communicated to this office. ix. No change in the terms of Deed of the Trust shall be effected without due procedure of law i.e. ....
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....cted, as the trust could not substantiate conduct of sufficient charitable activities.'' (B-2) Aggrieved against the aforesaid order dated 27.4.2018 of the ld. CIT(E) denying approval under section 80G of the Income Tax Act to the applicant, this present appeal has been filed by the applicant in Income Tax Appellate Tribunal ("ITAT" for short). (C) At the time of hearing before us, the learned counsel for the applicant submitted that the only reason given by the ld. CIT(E) for denying approval under section 80G of the I.T. Act to the applicant was that the assessee had incurred only Rs. 6,000/- for charitable activities such as distribution of stationary items Bottles and Tiffin boxes for orphan boys. The learned counsel submitted that the applicant had limited financial resources at its disposal because of which it was not possible for the assessee to spend more amount for charitable work. Drawing the attention to the financial statement, the learned counsel submitted that at the relevant time when the ld. CIT(E) rejected the applicant's application for approval under section 80G of the I.T. Act, the total funds available with the applicant (including donations amounting to ....
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....11. The Trust requires registration u/s 12A and 80G exemption for receiving donations to fulfil its objects. The 80G Certificate shall be enable the Trust to carry out its charitable activities; 12. The Trust has not incurred any expenditure; 13. Certificate as required regarding infringement of proviso to s.2(15) of the Income Tax Act, 1961 is enclosed; 14. The Trust is existing for relief to the poor, education, medical relief and also advancement of other general public welfare. 15. Copy of PAN card of the Trust is enclosed. 16. ID proof of the main Trustee of the Trust is enclosed." "Please refer to the discussions held on the last date of hearing on the above subject. Following further submissions are made: 1. Undertaking from the Founder Trustee with regard to distribution of funds on Dissolution of the Trust; amendment in the Trust Deed and also investment as prescribed in s. 11(5) of the Income Tax Act, 1961 is being filed. 2. The Trust has since opened a Bank account in the State Bank of India, Lotus Tower Friends Colony, Community Centre, New Delhi 110025 branch. The Account number of the Trust is 376....
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....s, 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 (5) of section 80G are fulfilled by the institution or fund, he shall record such satisfaction in writing and grant approval to the institution or fund specifying the assessment year or years for which the approval is valid. (5) Where the Commissioner is satisfied that one or more of the conditions laid down in clauses (i) to (v) of sub-section (5) of section 80G are not fulfilled, he shall reject the application for approval, after recording the reasons for such rejection in writing : Provided that no order of rejection of an application shall be passed without giving the institution or fund an opportunity of being heard. (....
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....ution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognized by the Government or by a University established by law, or affiliated to any University established by law, or is an institution financed wholly or in part by the Government or a local authority; (vi) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being approved by the Commissioner in accordance with the rules made in this behalf; and (vii) where any institution or fund had been approved under clause (vi) for the previous year beginning on the 1st day of April, 2007 and ending on the 31st day of March, 2008, such institution or fund shall, for the purposes of this section and notwithstanding anything contained in the proviso to clause (15) of section 2, be deemed to have been,- (a) established for charitable purposes for the previous year beg....