TaxTMI 
TaxTMI 
2022 (12) TMI 338
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....cation for the purpose of verification regarding genuineness of the charitable activities carried out for utilizing the receipts of the trust towards charitable objects of the trust. In response to the notices, the ld. A.R of the assessee attended on various dates and had furnished documents/evidences in compliance with the notices. These facts are not disputed. The assessee had applied for approval u/s 80G(5)(vi) of the Act and has given submissions dated 11-02-2019 wherein the assessee has given details of charitable and social welfare work that it undertakes such as school for poor children, gaushala, old-age home, upliftment of weaker section of the society etc. The assessee has further stated that since its inception the activities of the assessee were carried out by receiving donations for the fulfilment of the objects prescribed in the Memorandum & Articles of Association. Broadly, the reason for rejection for grant of exemption u/s 80G(5)(vi) of the Act by the ld. CIT (Exemption) was that the assessee received donations of Rs. 13,50,00,000/- from Shri Ganapati Devasthan Trust to be used inter-alia for construction and maintenance of temple of Gajanan Maharaj, but the constr....
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....table trust and along with the charitable activities, the said Commissioner had directed that a part of the amount can be spent for construction of the temple. In this regard, the ld. Counsel made a statement at Bar that till date the temple has not been constructed and if at all the temple is constructed, they would approach the Charity Commissioner for necessary amendment in the objects of the trust. Furthermore, it was contended that as per section 80G(5B) of the Act which is a non-obstante clause and it says that "notwithstanding anything contained in clause (ii) of sub-section (5) of and Explanation 3, an institution or fund which incurs expenditure, during any previous year which is of a religious nature for an amount not exceeding five per cent of its total income, shall be deemed to be an institution or fund to which the provisions of this section apply". He submitted that as on date, there is no construction of the temple and if at all whenever it is done and the necessary expenses for its maintenance, etc. the assessee shall comply with this provision and accordingly as on date the assessee is doing charitable activities as per the objects of the assessee-trust and the ve....
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....at the trust created for charitable purposes is engaged mainly in construction of the religious temple wherein no charitable activities are being carried out the department was right in denying renewal of recognition u/s 80G(5) of the Act. 5. We have perused case records, heard the rival contentions, analysed the facts and circumstances in this case. The relevant provision of the Act for which the assessee-trust has applied for exemption is sec. 80G(5)(vi) of the Act. Now, for approval as per provision of section 80G(5)(vi) the first and foremost requirement which the institution or fund has to satisfy is "if it is established in India for a charitable purpose". The conditions contemplated by clauses (i) to (iv) to section 80G(5) are the conditions which the institution was formed must additionally fulfil so as to be entitled to the approval by the Commissioner. In this case the assessee-trust is established in India and is for a charitable purpose, greatest evidence is that it has got registration u/s 12AA of the Act. It is settled legal position that once registration has been granted to a charitable trust u/s 12AA of the Act, the question whether the assessee-trust is for chari....
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.... (Exemption) that the assessee intends to utilise a substantial amount of funds received as donations during F.Y. 2015-16, for construction of temple of Gajanan Maharaj and for its maintenance, we have perused the entire order of the Jt. Charity Commissioner, Pune and therein at para 3 he has assigned an amount of Rs. 3,50,00,000/- out of total donations received by the assessee and this has to be spent for purchase of land, construction of temple, goshala, old age home and school for the poor students. Therefore, it cannot be said that a substantial amount the assessee proposes to spend on construction of the temple since all the aforestated expenses is to be incurred within the said amount. Furthermore, as on date, there has been no construction of the said temple. Therefore, the objection of the department that the assessee-trust intends to spend substantial amount of the said donation received for religious purpose is unsubstantiated and unfounded. The decision of Hon‟ble Delhi High Court (supra) relied on by the ld. D.R is substantially different on facts as compared to the present case since therein the trust had mainly used the funds for construction of religious templ....
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....it of 5%. It has also been mentioned by the ld. CIT (Exemption) that the assessee has not provided head-wise details of various expenditure as per para 4.3 of his order but all these details have been submitted before him and as annexed before us in the paper book. The ld. D.R did not refute these facts. In this scenario it will be also worth mentioning that while exercising the power to reject or accord approval u/s 80G(5) the Commissioner acts as a quasi-judicial authority. Therefore, the conclusion arrived at by him is expected to be supported by valid and cogent reasons. It is also expected that he should apply his mind to the facts of each case and give reasons either to grant or refuse recognition/approval. This requirement is very much imperative on the part of the Commissioner particularly having regard to the statutory provision under which he functions. This proposition has been observed and upheld by the Hon‟ble Andhra Pradesh High Court in the case of Tirumala Tirupati Devasthanam Vs. Chief C.I.T. (2001) 251 ITR 849 (AP). In the case of CIT Vs. Christian Medical College (2015) 274 ITR 17, it was observed and held by the Hon‟ble Punjab & Haryana High Court th....