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2019 (5) TMI 855 - AT - Income TaxDenial of approval u/s 80G(5)(vi) - denial of approval for the reason that since it had a large asset base there was no valid reason for taking donation - HELD THAT:- CIT(E) has not considered the application of the assessee in accordance with that prescribed under the Act and the Rules read alongwith it. There is no finding in the entire order vis a vis the genuineness of the activities carried out by the applicant/assessee. All the findings of the CIT(E) whether regarding no reason being given by the applicant for seeking donations considering that it had enough funds, or that it was receiving fees in cash, or that it intended opening a vridh ashram which was not its object, do not impinge on its charitable character or the genuineness of the activities carried out by it. The section does not state that the applicant has to justify taking donations. Similarly how receiving fees in cash impinges its charitable character, we fail to understand ,in the absence of any finding that such cash receipts were not being recorded in its books of accounts. Also the vision/plan of the applicant/assessee to undertake a project in the future of opening vridh ashram cannot be the reason for denying approval as being not part of its stated object, since as rightly pointed out by the assessee, the assessee has not undertaken the activity and it cannot be denied approval for contemplating carrying out in the future an activity not as per its stated objects since it can very well modify its objects when doing so . In the absence of any finding of the CIT(E), as required by law for granting approval u/s 80G regarding the charitable character and genuineness of the activities carried out by the assessee/applicant, we consider it fit to restore the issue back to the CIT(E) to reconsider the application of the assessee afresh and thereafter pass an order in accordance with law. We may add that the assessee be given due opportunity of hearing in this regard. Appeal of the assessee allowed for statistical purposes.
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