TMI Blog2015 (9) TMI 1563X X X X Extracts X X X X X X X X Extracts X X X X ..... he said application in the form of non-compliance of provision of section 80G(5) clauses (i) to (v). Coming to the provision of section 80G(5) we see on reading of clauses (i) to (v), there is no clause which says that the said approval be rejected if any institution or fund accepts anonymous donation. In the present case, this was the only reason given by the learned Commissioner of Income Tax for rejection of said registration. The provisions of section 115BBC of the Act are not relevant for granting approval under section 80G of the Act. There is no mention of this section 115BBC or even of anonymous donation in any of the provision of section 80G of the Act or rules made for the purposes of this section. The taxability of anonymous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the assessee is a society registered under section 12A of the Act. It filed an application under section 80G(5)(vi) of the Act before the learned Commissioner of Income Tax (Exemption), Faridabad as on 24.6.2014, which was transferred to Commissioner of Income Tax (Exemption), Chandigarh on change of jurisdiction. The learned Commissioner of Income Tax (Exemption), Chandigarh rejected the said application of the assessee by his order dated 24.12.2014 observing as follows : 3. The society is alleged to run a Gaushala in which there are more than 1,100 cows as per the details submitted. Perusal of the income and expenditure account filed for the ending 31.3.2014, 31.3.2013 and 31.3.2012 shows income of ₹ 4,65,570/-, ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Commissioner of Income Tax (Exemption) has rejected the application under section 80G(5)(vi) of the Act is that the assessee has received anonymous donations, which cannot be a valid reason for rejecting the application under section 80G(5)(vi) of the Act in view of the fact that the assessee is already registered under section 12A of the Act. Reliance was placed on a judgment of Lucknow Bench of the ITAT in the case of Kalyanam Karoti Vs. CIT in ITA No.682/LUCK/2008 dated 7.11.2008. It was also submitted that in this case, it has been held that the learned Commissioner of Income Tax (Exemption) cannot refuse to grant registration under section 80G of the Act only on the pretext that the particulars of the donors are not provided by it. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to in sub- clause (iv) of clause (a) of sub- section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely:- - ----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------- (vi) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being approved by the Commissioner in accordance with the rules 3 made in this behalf. 8. As per this provision, the approval of the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said application in the form of non-compliance of provision of section 80G(5) clauses (i) to (v). Now, coming back to the provision of section 80G(5) of the Act, we see on reading of clauses (i) to (v), there is no clause which says that the said approval be rejected if any institution or fund accepts anonymous donation. In the present case, this was the only reason given by the learned Commissioner of Income Tax for rejection of said registration. The provisions of section 115BBC of the Act are not relevant for granting approval under section 80G of the Act. There is no mention of this section 115BBC or even of anonymous donation in any of the provision of section 80G of the Act or rules made for the purposes of this section. The taxab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or 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 Ist April, 2007 while making the assessment of the society but so far as recognition under s. 80G(5)is concerned, they have no role to play. The provisions of s. 115BBC and s. 13(7) are applicable for the purposes of considering the anonymous donations as income of the assessee while making the assessment. But such anonymous donations are not relevant for deciding whether continuation of recognition under s. 80G(5) is to be granted or not unless there is other material to justify that the assessee society is engaged in the activities which are not c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
