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2020 (6) TMI 265 - ITAT DELHIApproval u/s 80G(5) rejected - assessee society is running a school and a B.Ed. college - assessee’s society was given approval u/s 12AA - HELD THAT:- Assessee society has been granted registration u/s 12AA of the Act by the department and, therefore, it remains undisputed that the department had found the activities of the assessee society genuine and, therefore, the genuineness of the activities cannot be doubted within a short span of six months. CIT (E) has himself stated that the assessee society has been running educational institutions and, thus, it is an accepted fact by the department that the society is carrying on educational activities. CIT (E) has drawn adverse inference from the fact of the assessee earning interest from FDRs and from the fact of maintaining FDRs. It is an accepted practice and a well known fact that educational institutions are directed to maintain some sort of reserve funds in the form of FDRs by the bodies granting affiliation and, therefore, the assessee cannot be put to a disadvantage for following the mandatory requirement by the affiliation bodies and boards. CIT (E) has misdirected himself by requiring the assessee society to submit a list of proposed donors and a plan for raising donations. In our considered opinion this is entirely irrelevant at the time of considering the assesee’s application for approval u/s 80G. That the assessee had no history of receiving donations in the past also cannot be a ground for rejecting assessee’s application u/s 80G. In another case of CIT vs. Rajmala Educational Society [2011 (10) TMI 459 - PUNJAB AND HARYANA HIGH COURT] held that merely because there was some surplus with the assessee trust, the same could not be the ground to deny registration u/s 80G (5) of the Act. CIT (E) was not justified in rejecting the assessee’s application for grant of approval u/s 80G (5) of the Act on frivolous grounds. We direct the Ld. CIT (E) to grant the approval u/s 80G (5) - Decided in favour of assessee.
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