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2016 (5) TMI 1510 - AT - Income TaxExemption u/s 80G - assessee is a Public Charitable Trust registered under the Bombay public Trust Act, 1950 and the Societies Registration Act, 1860 - assessee trust has incurred expenditure on its objects which is less than 85% of the total receipts and that the trust is charging fees for workshops and for laboratory activities - HELD THAT:- As perused the order the Ld. CIT denying grant of exemption u/s. 80G and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the assessee trust is granted registration u/s.12A vide Certificate No. 12AA(1)/2014-15-503 dated 20-05-2014 by the CIT-I, Nashik. We find the Ld.CIT vide his order dated 22-05-2014 rejected the claim of exemption u/s.80G of the Act on the ground that the assessee trust has incurred expenditure on its objects which is less than 85% of the total receipts and that the trust is charging fees for workshops and for laboratory activities. From the various decisions filed by the the assessee we find exemption u/s.80G cannot be denied merely on the ground that the assessee trust has incurred expenditure on its objects which is less than 85% of the total gross receipts. We find the in the case of N.N. Desai Charitable Trust Vs. CIT [1999 (5) TMI 11 - GUJARAT HIGH COURT] has held that while granting exemption u/s.80G the authority granting approval cannot act as assessing authority. The enquiry should be confined to finding out if institution satisfies prescribed conditions or not. Actual assessment of institution would not affect claim for special deduction u/s.80G. CIT in our opinion is not justified in denying exemption u/s.80G on the ground that the assessee trust has incurred expenditure on its objects which is less than 85% of the total gross receipts and that the assessee Trust is charging fees for workshop and laboratory activities. We hold that the CIT is not justified in denying exemption u/s.80G. We accordingly set aside his order and direct him to grant exemption u/s.80G to the assessee Trust. - Decided in favour of assessee.
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