Marathi Vidyan Parishad, Nashik V. Commissioner of Income-tax - 1,

ITA 1465/PUN/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1788 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 18-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K RASTOGI
• Assessee Lawyers: C D UPASANI; SAHIL GARUD
• Keywords: Depreciation; Charitable institution
• Section: 80G; 12A; 12AA; 11; 12

Judgement Text

] IQ.KS ] IQ.KS ] IQ.KS ] IQ.KS IQ.KS IQ.KSIQ.KS IQ.KS IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE , . . , # BEFORE MS. SUSHMA CHOWLA, JM AND SHRI R.K. PANDA, AM . / ITA NO.1465/PN/2014 MARATHI VIDYAN PARISHAD, NASHIK VIBHAG, 04, AKSHAR SOCIETY, SAMARTHA NAGAR, NASHIK PAN NO. AADTM2213J . / APPELLANT V/S CIT-I, NASHIK . / RESPONDENT / ASSESSEE BY : SHRI C.D. UPASANI & SHRI SAHIL GARUD / REVENUE BY : SHRI S.K. RASTOGI, CIT / ORDER PER R.K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE O RDER DATED 22-05-2014 PASSED BY THE CIT-I, NASHIK REJECTIN G THE CLAIM OF EXEMPTION U/S.80G OF THE I.T. ACT. 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A PUBLIC CHARITABLE TRUST REGISTERED UNDER THE BOMBAY PUBLIC TRUS T ACT, 1950 AND THE SOCIETIES REGISTRATION ACT, 1860. IT CAME INTO EX ISTENCE W.E.F. 16-12-2011. IT HAS ALSO BEEN GRANTED REGISTRATION U/S.1 2A VIDE ORDER OF / DATE OF HEARING :18.05.2016 / DATE OF PRONOUNCEMENT:20.05.2016 2 ITA NO.1465/PN/2014 THE CIT DATED 20-05-2014 BEARING REGISTRATION NO.12AA(1 )/2014-15- 503. THE ASSESSEE FILED AN APPLICATION DATED 27-11-2013 I N FORM 10G FOR EXEMPTION U/S.80G OF THE I.T. ACT, 1961 WHICH WAS RECE IVED BY THE OFFICE OF THE CIT ON 28-11-2013. THE LD.CIT CONDUCTED EN QUIRY THROUGH THE CONCERNED AO WHO SENT HIS REPORT THROUGH THE ADD L.CIT, RANGE-1, NASHIK VIDE HIS LETTER DATED 03-04-2014 STATING THAT THE TRUST IS CHARGING FOR VARIOUS WORKSHOPS UNDERTAKEN AND FOR LABORA TORY ACTIVITIES AND THAT THE EXPENDITURE INCURRED ON OBJECTS IS LESS TH AN 85% OF THE RECEIPTS. THUS, THE AO AS WELL AS THE JCIT HAVE NOT REC OMMENDED THE APPLICATION FOR EXEMPTION U/S.80G OF THE ACT. IN VIEW OF THE ABOVE, THE LD.CIT GAVE AN OPPORTUNITY TO THE ASSESSEE AND ASKED HIM TO PRODUCE THE BOOKS OF ACCOUNT, BILLS AND VOUCHERS ETC. FOR VERIFICATION AND THE PERIOD FOR WHICH COPIES OF ACCOUNTS WERE ATTACHED. FROM THE VARIOUS DETAILS FURNISHED BY THE ASSESSEE THE LD.CIT NOTED THAT THE TRUST HAS INCURRED EXPENDITURE WHICH IS LESS THAN 85% OF THE TOTAL G ROSS RECEIPTS. THE YEAR-WISE DETAILS ARE AS UNDER : F.Y. TOTAL GROSS RECEIPT EXPENDITURE ON OBJECTS PERCENTAGE 2011 - 12 RS.380/ - RS.3,480/ - DEFICIT 2012 - 13 RS.1,45,523/ - RS.98,766/ - 67.86% 2013 - 14 RS.1,09,692/ - RS.78,685/ - 71.73% 3. HE FURTHER NOTED THAT THE TRUST IS CHARGING FEES FOR WORKSHOPS AND FOR LABORATORY ACTIVITIES. IN VIEW OF THE ABOVE, HE REJECTE D THE REQUEST FOR EXEMPTION U/S.80G HOLDING THAT THE TRUST DOES NOT FULFIL THE CONDITIONS LAID DOWN IN SECTION 80G(5) OF THE I.T. ACT. 4. AGGRIEVED WITH SUCH ORDER OF THE CIT, THE ASSESSEE IS IN APPEAL BEFORE US WITH THE FOLLOWING GROUNDS : 1. THE HON'BLE COMMISSIONER OF INCOME TAX-I, NASHIK A LSO FAILED TO APPRECIATE THE FACT THAT BY VIRTUE OF GRANTING REGI STRATION U/S.12A OF THE INCOME TAX ACT, 1961 THE DEPARTMENT HAS ACCEPTED THE FACT THAT THE TRUST IS 3 ITA NO.1465/PN/2014 A CHARITABLE ORGANISATION AND THAT FOR GRANT OF EXEM PTION U/S. 80G OF THE INCOME TAX ACT, 1961 THERE IS NO STIPULATION AS TO TH E AMOUNT TO BE SPENT BY THE TRUST FOR BEING ELIGIBLE FOR EXEMPTION. 2. THE HON'BLE COMMISSIONER OF INCOME TAX-I, NASHIK F AILED TO APPRECIATE THE FACT THAT THE TRUST IS A NEWLY FORMED CHARITABLE ORGANISATION AND THAT THE GROSS RECEIPTS OF TRUST ARE WELL BELOW THE BASIC EXEMPTION LIMIT OF TAXABLE INCOME AS APPLICABLE TO THE TRUSTS/AOP. AS SU CH ANYWAY THERE IS NO LIABILITY TOWARDS INCOME TAX ON THE INCOME OF THE TRUST. 3. THE HON'BLE COMMISSIONER OF INCOME TAX-I, NASHIK ER RED ON FACTS WHILE CONSIDERING THE EXPENDITURE INCURRED BY THE TR UST DURING F.Y.2012 - 13 AND F.Y.2013 - 14 4. THE HON'BLE COMMISSIONER OF INCOME TAX-I, NASHIK HA S ERRED IN LAW WHILE INTERPRETING THE PROVISIONS OF SECTION 80G(5) O F THE INCOME TAX ACT, 1961 5. THE ORDER DT.22/05/2014 ISSUED BY THE HON'BLE COMM ISSIONER OF INCOME TAX - I, NASHIK REJECTING THE EXEMPTION U/S. 80G OF THE INC OME TAX ACT, 1961 BE SET ASIDE AND THE HON'BLE COMMISSIONER OF INCOME TAX-I, NASHIK BE DIRECTED TO GRANT THE EXEMPTION U/S.80G OF THE INCOME TAX ACT, 1961 TO THE APPELLANT TRUST 6. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR WITHDRAW ANY OF THE GROUNDS OF APPEAL . 5. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CIT REJECTED THE APPLICATION U/S.80G OF THE ACT ON THE GROUND THAT T HE EXPENDITURE INCURRED ON OBJECTS WAS LESS THAN 85% OF THE RECEIPTS A ND THAT THE ASSESSEE IS CHARGING FEES FOR WORKSHOPS AND FOR LABORATOR Y ACTIVITIES. REFERRING TO THE DECISION OF THE CHANDIGARH BENCH OF THE T RIBUNAL IN THE CASE OF M/S. BHARTIYA JAN SHIKSHA SEWA NYAS VS. CIT (EXEM PTION) VIDE ITA NO.305/CHD.2015 ORDER DATED 27-10-2015 HE SUBMITTE D THAT THE TRIBUNAL IN THE SAID DECISION HAS DIRECTED THE CIT TO GRAN T EXEMPTION U/S.80G ALTHOUGH THE ASSESSEE SOCIETY HAS NEITHER INCURR ED 85% OF THE CURRENT YEARS RECEIPT TOWARDS REVENUE RECEIPT NOR OPT ED FOR ACCUMULATION U/S.11(2) OF THE ACT FOR SHORTFALL IN EXPENDITURE FOR THE CURRENT INCOME. REFERRING TO THE DECISION OF THE RAJKOT BENCH OF THE TRIBUNAL IN THE CASE OF PUJYA SHRI JALARAMBAPA ANE MATUSHR I VIRBAIMA CHARITABLE TRUST VS. CIT VIDE ITA NO.249/RJT/2014 ORDER DATED 13-05- 4 ITA NO.1465/PN/2014 2014 HE SUBMITTED THAT THE TRIBUNAL FOLLOWING THE DECISION OF HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. O.P. JIN DAL GLOBAL UNIVERSITY HELD THAT RECOGNITION U/S.80G(5) CANNOT BE REFUSE D ON THE GROUND THAT ASSESSEE HAS FAILED IN MAKING EXPENDITURE TO THE EXTENT OF 85% OF ITS INCOME. REFERRING TO THE DECISION OF THE PUNE B ENCH OF THE TRIBUNAL IN THE CASE OF B.P.H.E. SOCIETY VS. ITO (TECHNICAL-I) VIDE ITA NO.111/PN/2010 ORDER DATED 30-08-2011 HE SUBMITTED TH AT THE TRIBUNAL IN THE SAID DECISION HAS HELD THAT THE COMMISSIONE R IS TO EXAMINE THE APPLICATION OF THE ASSESSEE SEEKING RECOGNITION U/S.80G. HE IS NOT REQUIRED TO ACT AS ASSESSING AUTHORITY AND DE CIDE UPON THE CLAIM OF THE ASSESSEE IN RESPECT OF ITS ASSESSMENT OF INCOM E. THE ACTUAL ASSESSMENT OF THE ASSESSEE AND ITS ACTUAL LIABILITY TO TAX ARE MATTERS TO BE DECIDED ONLY IN THE ASSESSMENT PROCEEDINGS. SIMILAR VIE W HAS BEEN TAKEN BY THE PUNE BENCH OF THE TRIBUNAL IN THE CASE OF S HIKSHAN PRASARAK MANDALI VS. CIT REPORTED IN 117 TTJ 337 AND IN THE CASE OF SHRI KRISHNA KIRPA GAUSHALA SAMITI VS. CIT (EXEMPTION) VIDE I TA NO.103/CHD./2015 ORDER DATED 21-09-2015. 6. WITHOUT PREJUDICE TO THE ABOVE, HE FURTHER SUBMITTED THAT THE AMOUNT OF EXPENDITURE INCURRED ON OBJECTS AS RECORDED BY THE CIT IN HIS ORDER DEFERS FROM ACTUAL AMOUNT INCURRED AS PER THE AUD ITED STATEMENT SINCE THE CIT HAS NOT CONSIDERED THE DEPRECIATION AS PE R THE AUDITED PROFIT AND LOSS ACCOUNT. SO FAR AS THE OBJECTION OF THE C IT THAT THE TRUST IS CHARGING FEES FOR WORKSHOPS AND FOR LABORATORY ACTIVITIE S HE SUBMITTED THAT THE SAME IS COLLECTED TO MEET THE EXPENDITURE FOR THE WORKSHOP AND LABORATORY ACTIVITIES. HE ACCORDINGLY SUBMITTED THAT THE ASSESSEE SHOULD BE GRANTED EXEMPTION U/S.80G. 5 ITA NO.1465/PN/2014 7. THE LD. CIT DEPARTMENTAL REPRESENTATIVE ON THE OTHE R HAND STRONGLY RELIED ON THE ORDER OF THE CIT. HE SUBMITTED THAT THE CIT HAS GIVEN JUSTIFIABLE REASONS FOR DENYING EXEMPTION U/S.80G OF THE I.T. ACT . 8. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES, PERUSED THE ORDER THE LD. CIT DENYING GRANT OF EXEMPT ION U/S.80G AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE HAVE A LSO CONSIDERED THE VARIOUS DECISIONS CITED BEFORE US. WE FIND THE ASSESSE E TRUST IS GRANTED REGISTRATION U/S.12A OF THE ACT VIDE CERTIFICATE NO . 12AA(1)/2014-15-503 DATED 20-05-2014 BY THE LD.CIT-I, NASHIK. WE FIND THE LD.CIT VIDE HIS ORDER DATED 22-05-2014 REJECTED THE CLAIM OF EXEMPTION U/S.80G OF THE ACT ON THE GROUND THAT THE ASS ESSEE TRUST HAS INCURRED EXPENDITURE ON ITS OBJECTS WHICH IS LESS THAN 8 5% OF THE TOTAL RECEIPTS AND THAT THE TRUST IS CHARGING FEES FOR WORKSHO PS AND FOR LABORATORY ACTIVITIES. FROM THE VARIOUS DECISIONS FILED BY TH E LD. COUNSEL FOR THE ASSESSEE WE FIND EXEMPTION U/S.80G CANNOT BE DENIED MERELY ON THE GROUND THAT THE ASSESSEE TRUST HAS INC URRED EXPENDITURE ON ITS OBJECTS WHICH IS LESS THAN 85% OF THE TOTAL GROSS RECEIPTS. 9. WE FIND THE RAJKOT BENCH OF THE TRIBUNAL IN THE CASE O F PUJYA SHRI JALARAMBAPA ANE MATUSHRI VIRBAIMA CHARITABLE TRUST (SUP RA) WHILE DECIDING AN IDENTICAL ISSUE HAS OBSERVED AS UNDER : 5. RIVAL SUBMISSIONS WERE CONSIDERED. THE HONBLE PUNJ AB & HARYANA HIGH COURT IN THE CASE OF CIT V. O.P. JINDAL GLOBAL UNIVERSITY (SUPRA) HELD THAT AT THE TIME OF GRANTING APPROVAL FOR EXEMPTION U/S 80G, OBJECT OF THE TRUST IS REQUIRED TO BE EXAMINED AND APPLICATION OF F UNDS CAN BE EXAMINED BY ASSESSING OFFICER AT THE TIME OF FRAMING ASSESSMENT. THE RELEVANT PORTION OF THE AFORESAID JUDGMENT IN THE CASE OF O.P. JINDAL GLOBAL UNIVERSITY (SUPRA) IS AS UNDER:- 13. IN ITANO.701 OF 2010 TITLED CIT V. SURYA EDUCA TIONAL & CHARITABLE TRUST [2011] 203 TAXMAN 53/15 TAXMANN.COM 123 (PUNJ & HAR.) IT HAS BEEN HELD BY THIS COURT THAT AT THE STA GE OF REGISTRATION UNDER SECTION 12AA OF THE ACT, THE EXTENT AND NATUR E OF ACTIVITIES ARE 6 ITA NO.1465/PN/2014 NOT REQUIRED TO BE EXAMINED. THAT QUESTION IS REQUIRE D TO BE EXAMINED IN ASSESSMENT PROCEEDINGS. THE COURT OBSERVED AS UNDER: 'THEREFORE, THE OBJECT OF SECTION 12AA OF THE ACT, IS TO EXAMINE THE GENUINENESS OF THE OBJECTS OF THE TRUST, BUT NOT THE IN COME OF THE TRUST FOR CHARITABLE OR RELIGIOUS PURPOSES. THE STAGE FO R APPLICATION OF INCOME IS YET TO ARRIVE I.E. WHEN SUCH TRUST OR INST ITUTION FILES ITS RETURN. THEREFORE, WE FIND THAT THE JUDGMENTS REFERR ED TO BY THE LEARNED COUNSEL FOR THE APPELLANT ARE NOT APPLICABLE TO THE FACTS OF THE PRESENT CASE ARISING OUT OF THE QUESTION OF REGISTRA TION OF THE TRUST AND NOT OF ASSESSMENT.' 14. THE ISSUE HAS BEEN EXAMINED THAT AT THE STAGE OF RE GISTRATION AND FOR EXEMPTION UNDER SECTION 80G OF THE ACT, THE STAT ED OBJECT OF THE TRUST IS REQUIRED TO BE EXAMINED. WHETHER THE FUNDS AR E PROPERLY APPLIED OR NOT, CAN BE EXAMINED BY THE ASSESSING OFFIC ER AT THE TIME OF FRAMING THE ASSESSMENT. IN THE CASE ON HAND, THE ONLY REASON GIVEN BY THE LD. COMMISSIONER OF INCOME-TAX, RAJKOT-III, RAJKOT IN THE IMPUGNED ORDE R FOR REJECTING THE APPLICATION OF THE ASSESSEE-TRUST FOR RECOGNITION U/S 80G (5) IS THAT THE ASSESSEE-TRUST HAS FAILED IN MAKING EXPENDITURE TO THE EX TENT OF 85% OF ITS INCOME. THEREFORE, KEEPING IN VIEW THE RATIO OF JUD GMENT OF HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT V. O.P.JINDA L GLOBAL UNIVERSITY (SUPRA), THE RECOGNITION U/S 80G(5) CANNOT BE REFUSED ON THIS GROUND. I, THEREFORE, SET ASIDE THE IMPUGNED ORDER OF LD COMMISSIO NER OF INCOME-TAX, RAJKOT-III, RAJKOT AND DIRECT HIM TO GRANT THE RECO GNITION U/S 80G(5) OF THE INCOME-TAX ACT, 1961 TO THE ASSESSEE-TRUST. 10. WE FIND THE HONBLE GUJARAT HIGH COURT IN THE CASE O F N.N. DESAI CHARITABLE TRUST VS. CIT REPORTED IN 246 ITR 452 HAS H ELD THAT WHILE GRANTING EXEMPTION U/S.80G THE AUTHORITY GRANTING APPRO VAL CANNOT ACT AS ASSESSING AUTHORITY. THE ENQUIRY SHOULD BE CONFINED T O FINDING OUT IF INSTITUTION SATISFIES PRESCRIBED CONDITIONS OR NOT. ACTUAL AS SESSMENT OF INSTITUTION WOULD NOT AFFECT CLAIM FOR SPECIAL DEDUCTION U/S.80 G. FOLLOWING THE ABOVE DECISION, THE PUNE BENCH OF THE TRIBUNA L IN THE CASE OF B.P.H.E. SOCIETY (SUPRA) HAS HELD AS UNDER : 7. FROM THE AFORESAID, IT IS CLEAR THAT IN SO FAR AS THE RELEVANCE OF 80G(5)(I) IS CONCERNED, IT IS TO EXAMINE THE ELIGIBIL ITY OF THE ASSESSEE APPLICANT TO CLAIM THAT ITS INCOME IS NOT LIABLE TO B E INCLUDED IN THE COMPUTATION OF TOTAL INCOME. AS PER THE HON'BLE HIGH COURT, THE FIRST ASPECT OF THE MATTER IS WHETHER THE APPLICANT IS SUCH, WHOSE INCOME IS NOT LIABLE TO BE INCLUDED IN ITS TOTAL INCOME DEPENDING ON ITS STATU S AND CHARACTER. THE SECOND ASPECT IS THE ACTUAL ASSESSMENT OF INCOME, WHICH T AKES PLACE ONLY IN FUTURE AFTER THE DONATION IS RECEIVED BY THE DONEE O N FULFILLMENT OF OTHER CONDITIONS. EXPLAINING FURTHER, AS PER THE HON'BLE HI GH COURT THE LATTER 7 ITA NO.1465/PN/2014 ASPECT FALLS IN THE RELAM OF THE ASSESSMENT OF THE APPLIC ANT WHICH DERIVES INCOME AND IT DOES NOT AFFECT THE ENTITLEMENT OF THE DONOR TO CLAIM DEDUCTION UNDER SECTION 80G OF THE ACT. THE HON'BLE HIGH COURT EMPHASIZED THAT FOR THE PURPOSES OF ENQUIRY UNDER SECTION 80G(5) IT IS TO BE SEEN WHETHER THE TRUST IS REGISTERED U/S 12 OR NOT. IT HAS BE EN SPECIFICALLY OBSERVED THAT , 'ONCE A TRUST IS REGISTERED UNDER SECTIO N 12A, ITS INCOME FROM PROPERTY, WHICH INCLUDES DONATIONS WHETHER COVER ED UNDER SECTION 11(1)(D) OR UNDER SECTION 12 SUCH DONATIONS ARE DEEMED TO BE INCOME FROM PROPERTY, IS NOT TO BE INCLUDED IN ITS TOTAL INCOME U NDER SECTION 11 OR SECTION 12. THE ENQUIRY UNDER SECTION 80G(5) CANNOT GO BEYO ND THAT.'. 8. IN SUM AND SUBSTANCE AS PER THE HON'BLE HIGH COURT WHEN THE COMMISSIONER IS TO EXAMINE THE APPLICATION OF THE ASSESSEE SEEKING RECOGNITION UNDER SECTION 80G HE IS NOT REQUIRED TO A CT AS AN ASSESSING OFFICER AND DECIDE UPON THE CLAIM OF THE ASSESSEE IN RE SPECT OF ITS ASSESSMENT OF INCOME. THE ACTUAL ASSESSMENT OF THE ASSESSEE AN D ITS ACTUAL LIABILITY TO TAX ARE MATTERS TO BE DECIDED ONLY IN T HE ASSESSMENT PROCEEDINGS. 9. TO THE SIMILAR EFFECT IS ALSO THE DECISION OF OUR C O-ORDINATE BENCH IN THE CASE OF SHIKASHAN PRASARAK MANDALI (SUPRA). IN THI S CASE ALSO, THE COMMISSIONER OF INCOME-TAX DENIED RECOGNITION UNDER SE CTION 80G FOR THE REASON THAT THE EXEMPTION UNDER SECTIONS 11 & 12 HAD B EEN DENIED TO THE ASSESSEE IN THE ASSESSMENT PROCEEDINGS. AS PER THE BENCH, SUC H OBJECTION WOULD NOT IPSO FACTO MILITATE AGAINST DENIAL OF RECOG NITION UNDER SECTION 80G AS LONG AS IN PRINCIPLE AND ON A PRIMA FACIE BASIS ASSESSEE COMPLIED WITH THE CONDITIONS SET OUT IN SECTION 80G(5)(I) TO (V ) OF THE ACT. 10. HAVING REGARD TO THE AFORESAID OBSERVATIONS OF TH E HON'BLE GUJARAT HIGH COURT, IN OUR VIEW, IN THE PRESENT CASE THE OBJ ECTION RAISED BY THE COMMISSIONER OF INCOME-TAX TO DENY THE RECOGNITION UN DER SECTION 80G IS FOUNDED ON IRRELEVANT CONSIDERATIONS BY EMBARKING UPO N AN EXERCISE WHICH IS ONLY IN THE REALM OF ASSESSMENT PROCEEDINGS. IN THE PR ESENT CASE, UNDENIABLY THE ASSESSEE IS REGISTERED UNDER SECTION 12A OF THE ACT AND SUCH REGISTRATION CONTINUES. IN THIS VIEW OF THE MATTER, IN OUR VIEW, THE ASSESSEE FULFILS THE CONDITION PRESCRIBED UNDER CLAUSE (I) OF SE CTION 80G(5) OF THE ACT. THERE BEING NO OTHER OBJECTION RAISED BY THE COMMISSIO NER OF INCOME-TAX, WE THEREFORE PROCEED ON THE BASIS THAT THE ASSESSEE HAS FU LFILLED ALL THE CONDITIONS PRESCRIBED UNDER CLAUSES (I) TO (V) AND IS TH US ELIGIBLE FOR RENEWAL OF RECOGNITION UNDER SECTION 80G(5) OF THE ACT IN TE RMS OF ITS APPLICATION DATED 19.6.2009. 11. SIMILAR VIEW HAS BEEN TAKEN BY VARIOUS OTHER BENCHES OF THE TRIBUNAL WHICH ARE RELIED ON BY THE LD. COUNSEL FOR THE ASS ESSEE. THEREFORE, THE LD.CIT IN OUR OPINION IS NOT JUSTIFIED IN DENY ING EXEMPTION U/S.80G ON THE GROUND THAT THE ASSESSEE TRU ST HAS INCURRED EXPENDITURE ON ITS OBJECTS WHICH IS LESS THAN 85% OF THE TOTAL GROSS RECEIPTS AND THAT THE ASSESSEE TRUST IS CHARGING FEES FO R WORKSHOP AND LABORATORY ACTIVITIES. IN VIEW OF THE ABOVE DISCUSSION AND RELYING ON THE 8 ITA NO.1465/PN/2014 DECISIONS CITED (SUPRA), WE HOLD THAT THE LD.CIT IS NOT JUS TIFIED IN DENYING EXEMPTION U/S.80G OF THE I.T. ACT. WE ACCORDINGL Y SET ASIDE HIS ORDER AND DIRECT HIM TO GRANT EXEMPTION U/S.80G OF THE ACT TO THE ASSESSEE TRUST. 12. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20-05-2016. SD/- SD/- ( SUSHMA CHOWLA ) ( R.K. PANDA ) JUDICIAL MEMBER ACCOUNTANT MEMBER IQ.KS PUNE ; DATED : 20 TH MAY , 2016. LRH'K % &() *) / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. % ( ) - THE CIT-I, NASHIK 4. ( ++, , , , IQ.KS / DR, ITAT, A PUNE; 5. 0 / GUARD FILE. / BY ORDER , // ( + //TRUE COPY //// 23 + , / SR. PRIVATE SECRETARY ,, IQ.KS / ITAT, PUNE