TMI Blog2022 (9) TMI 1568X X X X Extracts X X X X X X X X Extracts X X X X ..... this argument. This view of ours is find support from the finding of the coordinate bench of ITAT Mumbai in the case of Green Education Trust [ 2016 (6) TMI 979 - ITAT MUMBAI] - CIT(E) has took a wrong stand in rejecting the application of the assessee in granting approval u/s 80G. We therefore of the view that the order of the Ld CIT(E) deserves to be set aside with a direction to grant approval u/s 80G to the assessee, as sought vide its application in form 10G. Consequently, the sole ground of the appeal of the assessee is allowed. - SHRI RAVISH SOOD, JM SHRI ARUN KHODPIA, AM For the Appellant : Shri R.B.Doshi, CA For the Respondent : Shri Sanjay Kumar, Sr. DR ORDER PER ARUN KHODPIA, AM : This appeal is filed by the assessee against the order passed by the CIT(E), Bhopal, dated 20-9-2018, on the following ground :- 1. In the facts and circumstances of the case and in law, Ld. CIT (Exemption) was not justified in holding that the appellant is not entitled to grant of approval u/s.80G and he erred in rejecting the application of approval u/s.80G. The appellant is entitled for approval u/s.80G, 2. Facts in brief are that the assessee applied for exemption u/s.80G of the Act in fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l u/s 80G under such circumstances holding the assessee is not entitle for the same was not justified and uncalled for, thus needs to be set aside. 5. The ld. Sr. DR relied on the order of CIT(E), wherein the application of the assessee company for grant of registration u/s 80G was rejected, with the observations that (a) The Activities of the assessee company are commercial in nature (b) Company has not specified or explained for requirement of 80G (c) Company is charging fee for education and service provided, having generating surplus, thus no justification for its approval u/s 80G, (d) JCIT and AO have also not recommended the case for exemption u/s 80G(5), reporting companies activity are not charitable since the assessee company is involved in selling of books/college bags/ etc apart from generating income from tuition fee/hostel fee/bus fee etc. JICT/AO also denied the exemption on the ground that company do not have any indulgence with respect to their object relief to poor . Thus, requested to upheld the order of Ld CIT(E). 6. We have heard rival submissions, perused the available records carefully and also have gone through the judicial pronouncement relied upon. Admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of coordinate bench of the ITAT Amritsar in the case of Adesh Foundation (Regd.) Vs CIT(E), [2019] 105 taxmann.com 13 (Amritsar Trib.), where in issues raised in this instant appeal are dealt with in detail and held as under: Registration in a particular case may have been granted even without commencement of any activities. An examination of these activities, commenced subsequently, and a finding as to they being genuine, is, a pre-requisite for an approval under section 80G(5)(vi) read with rule 11AA(3). The onus to show as to why, inspite of registration under section 12AA, or without initiating steps for its‟ withdrawal, if not actually withdrawing it, it yet considers it as not a fit case for grant approval under section 80G, is on the revenue. [Para 3.1] The competent authority, while considering an application for approval under section 80G(5)(vi), is to examine it from the standpoint of rule 11AA read with section 80G(5) in-as-much as only a positive satisfaction of the conditions stipulated therein would qualify for the said approval. [Para 3.2] The only basis cited is the absence of any demonstrated need for donations, which the assessee-society shall ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Granting admission, particularly to medical courses to candidates in lieu of money (or money s worth), is a fact of public life in India, a scourge. However, alluding thereto, without in any manner corroborating it with the assessee s conduct, or with that of the persons managing it, in the past, would render it as no more than a surmise, a conjecture, liable to be struck down as arbitrary. It is in this context that the denial of any such intent, made equally vehemently by the assessee, becomes relevant. In other words, though there is possibility of a misuse of the section 80G benefit, unless there is a firm basis to regard it as a distinct possibility, in which case it would fall within the scope of the term genuineness of activities , enquiry into which and a positive satisfaction qua which, is a pre-condition for an approval under section 80G. It may here be pertinent to draw attention to the observations of the jurisdictional High Court in CIT v. Sonepat Hindu Educational Charitable Society [2005] 278 ITR 262/147 Taxman 1 (Punj. Har.), requiring the competent authority to enquire into the real purpose of the applicant, i.e., distinct and apart from that stated in the memoran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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