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2020 (12) TMI 173 - AT - Income TaxExemption u/s 80G denied - assessee duly registered under section 12AA - CIT(E) was of the opinion that it is not possible to verify the genuineness of the objects and activities of the trust since there is no sufficient activities carried on by the assessee - HELD THAT:- Presently in the institution totally 400-450 students are studying from LKG to 7th Standard. The appellant has provided details of the fee collection and expenditure spent from Assessment Year 2017-18, 2018-19 and 2019-20 - It can be rightly said that the assessee is carrying on its objects. Being so, there is no merit in the finding of CIT(E) that there are no sufficient activities carried on by the assessee. The original objects continue to exist and assessee is a charitable institution and assessee is eligible for continuation of recognition under section 12A/12AA of the Act. Principle of consistency is also in favour of the assessee as based on the factual position. The assessee is carrying on the same objects as approved by the Department. Being so, there is no justification for rejecting the application for renewal under section 80G The judgment relied on by the CIT(E) in its order is with regard to the fact that approval is not automatic since no charitable activities were being carried on by that assessee. In the present case, assessee filed details wherein assessee clearly demonstrated that assessee has been running the educational institution and it is not dormant and assessee being so, we direct the CIT(E) to grant the recognition under section 80G - Decided in favour of assessee.
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