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CIT (E) was not justified in rejecting the assessee’s application for grant of approval u/s 80G (5) of the Act on frivolous grounds.

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Sec. 80G(5) of Income Tax Act, 1961 – Deduction - The assessee society is running a school and a B.Ed. college. The assessee’s society was given approval u/s 12AA of the Act. After that, the assessee society made an application before CIT(E) for grant of approval u/s 80G (5) of the Act. CIT (E) rejected the assessee’s application saying that the assessee society has failed to elaborate on the target group of persons from whom the donation was to be sought and that there was no list of people who have shown the inclination to donate to the society. Since there were investible surpluses available with the assessee society, there was no rationale for seeking donations. Considering the legal submissions that once the exemption has been granted u/s 12AA, approval u/s 80G of the Act cannot be denied, ITAT held that CIT (E) was not justified in rejecting the assessee’s application for grant of approval u/s 80G (5) of the Act on frivolous grounds and directed the CIT(E) to grant the approval u/s 80G (5) of the Act. Appeal of the assessee allowed.—PRADEEP EDUCATION SOCIETY VILL vs. CIT.[2020] 26 ITCD Online 040 (ITAT-DELHI)