HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 207 / 2017 Commissioner of Income Tax (Exemptions), 3rd Floor, Kailash Heights, Lal Kothi, Tonk Road, Jaipur ----Appellant Versus Keshar Devi Godara Samajik Kalyan, Sansthan Singor, VPO: Singor, Via Bhokri Distt. Jhunjhunu ----Respondent For Appellant(s) : Mr. Daksh Pareek for Mr. Sameer Jain HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE INDERJEET SINGH Judgment 20/07/2017 1. By way of this appeal, appellant has assailed judgment and order of Tribunal whereby Tribunal has allowed appeal of assessee while considering evidence on record. 2. We are in complete agreement with view taken by tribunal. 3. Similarly view was taken in tax appeal no.276/2016 decided on 7.12.2016 (Commissioner of Income Tax vs. M/s Hemdha Medi Resources Pvt. Ltd.) wherein it has been observed as under:- 5. In this regard Tribunal in para 2.9 has observed as under:- 2.9. We have heard rival contentions and perused material available on record. Firstly, it is interesting to note that it is for third time that appellant has filed (2 of 3) [ITA-207/2017] subject application under section 80G(5) and on previous occasions, reasons cited by ld CIT varies from assessee not registered u/s 12AA to registration certificate u/s 12AA not enclosed with application and hence, it is not eligible for approval u/s 80G(5)(vi). reasons cited in impugned order states that seeing insignificant nature of activity, case does not seems to be fit for granting exemption u/s 80G at this stage. question that arises for consideration is whether reason cited by ld CIT justifies denial of approval under section 80G(5) of Act. On perusal of section 80(5) as well as Rule 11AA, what is required to be seen is whether institution/fund has been established in India for charitable purpose or not. Secondly, it lays down certain additional conditions under clause (i) to clause (v) which are required to be fulfilled. Rule 11AA provides that where CIT is satisfied that one or more of conditions specified in clause (i) to clause (v) of section 80G(5) are not fulfilled, he shall reject application for approval after recording his reasons for such rejection. In instant case, appellant has been duly registered under section 12AA which shows beyond any doubt that ld CIT has already verified genuineness of objects and its activities are not doubted by CIT. Hence, having granted registration u/s 12AA, first condition regarding establishment of institution for charitable purposes is fulfilled.Regarding satisfaction of additional conditions specified in clause (I) to clause (v) of section 80G(5), there is no dispute as apparent from order of ld CIT. As can be seen from Revenue s stand of rejection of earlier applications filed by appellant,the approval under section 80G is closely linked to approval under section 12AA. Now once, registration under section 12AA has been granted, approval under section 80G should not be denied unless case of appellant falls under nonfulfillment of one or more of conditions specified in section 80G(5) which is not case before us. Regarding activities carried out by appellant towards achievement of its object for establishment of hospital and medical college, it cannot be said that assessee has not yet commenced any activity. CIT has accepted that assessee has taken steps for implementation of its objects in as much as it has acquired land, converted land for institutional use for setting up hospital project, appointed architect., carried out soil testing etc. All these activities are towards achieving objects of trust. registration under section 25 of companies Act has been granted on (3 of 3) [ITA-207/2017] 13.10.2012, subsequently land was acquired on 29.3.2013 and thereafter other activities like conversion of land use, appointment of architects and soil testing has been done. project of setting up hospital and medical college is complex project requiring various approvals, clearances etc which appellant has been complying with. It is critical that as part of fund raising programme for this project, appellant has sought approval under section 80G whereby donations can be accepted for approved purposes and project can be expedited. approval under section 80G will thus aid and provide necessary support in successful completion of project. In our view, ld CIT (Exemption) was not correct in denying approval under section 80G(5) to appellant. 6. We make it clear that observations which are made by Tribunal are required to be accepted for this year. If activity is not started in two years, as contemplated, it will be open for authority to take steps for withdrawal of registration. No substantial question of law is involved. In view of above, appeal stands dismissed. (INDERJEET SINGH),J. (K.S. JHAVERI),J. Bmg/27. Commissioner of Income-tax (Exemptions), Jaipur v. Keshar Devi Godara Samajik Kalyan