Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2008 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (4) TMI 396 - ITAT PUNE-ARecognition Of Institution - Application for renew approval u/s 80G(5)(vi) rejected - For the purpose of deciding on whether or not to grant approval under section 80G, a CIT has to only examine whether or not the conditions set out in section 80G(5)(i) to (v) are satisfied. HELD THAT:- Assessee maintains accounts of its receipts and expenditure. The discrepancies pointed out by the Departmental Representative in wrong accounting treatment to receipts by taking the same directly to balance sheet are not really relevant in this context, because all that law requires is that accounts of receipts and expenditure be maintained by the assessee. The correctness of fine issue in accounting treatment are not covered by the scope of section 80G(5)(iv). The societies registered under Societies Registration Act, 1960, as admittedly the assessee is, are one such form of organization. This condition is also therefore satisfied. In the course of hearing before us, there was good deal of discussion on the objections raised by the Assessing Officer in the course of assessment years 2003-04 and 2004-05 and arguments on merits were advanced by both the sides. However, as learned CIT(A) is in season of the matter, we refrain from making any specific observations on these aspects. Suffice to say that prima facie correctness of the findings of the Assessing Officer cannot be said to be entirely free from doubt and, in any event, these findings at best challenge assessee’s compliance with certain rule and procedures which do not, in any way, challenge the fact charitable activities actually having been carried out. Therefore, based on these findings, one cannot come to the conclusion that the charitable activities of the assessee society were not genuine in any event, as we have stated earlier as well, all that the learned CIT has to see, for the purpose of deciding whether or not the approval is to be granted for the purpose of section 80G is whether or not the conditions of section 80G(5)(i) to (v) are satisfied, and, as per the mandate of rule 11AA(4), once these conditions are satisfied, he has to grant the approval. Genuineness of the charitable/activity, in the absence of any specific mention about connotations of that expression in the Income-tax Act or Income-tax Rules, must remain confined to the aspect that the charitable activities are actually carried out by the assessee. The accounting treatment of receipt and fixation of fees in excess of the norms laid down by the controlling bodies, even if that be so do not decide the genuineness of activities of trust or institution. Therefore, in our considered view, effectively all the necessary requirements under rule 11AA(4) are satisfied and the CIT ought to have granted approval under section 80G(2)(iv). We, therefore, uphold the grievance of the assessee and accordingly direct the CIT to grant approval under section 80G. In the result, the appeal is allowed.
|