TMI Blog2008 (11) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... sing continuation of recognition under that section. We notice that the ld CIT has not given a finding that donations are the money of the society. It is undisputed fact that assessee has actually received the donations but the donors are not clearly identifiable or some of the particulars are not furnished by them, then it cannot be held that activities of the assessee are not genuine or that donations are the money of the assessee and therefore, it is not entitled for recognition u/s. 80G(5). In the present case, once the AO has only held that donors have not given their PAN details thereby meaning that donations are held to be the money from others and therefore, activities of the society cannot be doubted as not genuine. Therefore, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly, a letter dt. 29th Aug., 2008 was issued. In response Shri V.B. Bhargava, chartered accountant attended and filed a written reply. The applicant was required to furnish PAN of the donors as the donations were of very large amount. For the financial year 2006-07 a list was furnished which is being made part of this order vide Annex. 'A'. From the list it can be observed that there are huge donations in respect of which PAN have not been furnished. PAN of majority of donors were not furnished on account of following reasons: (i) In few cases donations have been received from Sants, Mahants and Sadhus who are not assessed to income-tax, accordingly, do not have PAN. (ii) In few cases we could not get in contact with the donors, as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it will not affect grant of recognition under s. 80G(5). Further, the assessee fulfilled the conditions laid down in cls. (i) to (v) of s. 80G(5). The provisions of s. 115BBC r/w s. 13(7) would be applicable only when the income of the society is assessed by the AO. This will not be criterion for refusing recognition under s. 80G(5) or continuation thereof. 4. Against this the learned Departmental Representative supported the order of the learned CIT. 5. We have considered the rival submissions and perused the material on record. In our considered view, the reasons advanced by the learned CIT for refusing to grant continuation of recognition under s. 80G(5) are superfluous and do not stand to legal scrutiny within the meaning of s. 80G( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carry out enquiries as he considers necessary and call for documents or information from the institution/fund for satisfying himself about the genuineness of its activities. Further, cl. (5) of r. 11AA authorizes CIT to refuse recognition or continuation thereof only when the conditions laid down in cls. (i) to (v) of sub-s. (5) of s. 80G are not fulfilled. 7. Thus neither in the main sub-s. (5) or rules made thereunder, there is any provision to refuse recognition or continuation thereof only on the ground that the particulars of donors are not provided by institution or fund. Non-availability of particulars may empower the AO to invoke s. 115BBC r/w s. 13(7) which are effective from 1st April, 2007 while making the assessment of the soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certificate and hence, deduction under s. 80G could not be denied by not giving recognition to the society under s. 80G(5) or continuation thereof. In any case, there is no change in the facts and circumstances of the case as in the earlier years and there is no cogent material reason for refusing continuation of recognition. We rely on the other decision of Hon'ble Supreme Court in the case of Radhasoami Satsang vs. CIT (1991) 100 CTR (SC) 267 : (1992) 193 ITR 321 (SC) for the proposition that if circumstances of the case remained the same as in earlier years and there is no material evidence available with the AO to take a different view then the decision taken in earlier years has to be followed. 8. Further, once there is no material t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80G(5). 9. The learned Authorised Representative relied on the decision of the Hon'ble Gujarat High Court in the case of N.N. Desai Charitable Trust vs. CIT (2001) 165 CTR (Guj) 116 : (2000) 246 ITR 452 (Guj). It is held therein that scope of enquiry is confined to find out whether institution satisfies the prescribed conditions. Actual assessment of institution would not affect the claim for special deduction under s. 80G. This authority supports our conclusion that the learned CIT has only to see while granting recognition under s. 80G(5) or continuation thereof whether society fulfills the conditions laid down in cls. (i) to (v) of s. 80G(5) and not whether certain receipts, i.e., voluntary donations are properly explained or not. This ..... X X X X Extracts X X X X X X X X Extracts X X X X
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