TMI Blog2018 (10) TMI 1384X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of funds from sale of art work was only incidental to main activity of the appellant. The Tribunal noted the fact that CIT(E) had not raised any question regarding the genuineness of the activity of the assessee-society. No doubt registration under Section 12AA of the Act by itself would not entitle the assessee for approval under Section 80G of the Act but in the absence of any dispute regarding the aim and objects of the assessee Society, denial of approval under Section 80G of the Act cannot be sustained. Appellant has neither been able to show that the view taken by the Tribunal is erroneous nor produce any material on record to show that the view taken by the Tribunal is legally unsustainable. - decided against revenue - ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... via sale of art work purely on commercial principles and further that the applicant has been accepting donations on the pretext of sale of paintings? iii) Whether on the facts and in the circumstances of the case the Hon'ble ITAT has erred in placing reliance on the fact of the assessee having 12AA registration and by ignoring the statutory condition that 12AA registration is merely a pre-condition for entities to be eligible for approval u/s 80G(5)? iv) Whether on the facts and in the circumstances of the case, the order of the Appellate Tribunal is contrary to the evidence and material on the record of the case and therefore, perverse? 3. The assessee-society was duly registered under Section 12AA of the Act. The assessee-so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or institution and may also make such inquiries as he may deem necessary in this behalf; and ( b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he;- ( i) shall pass an order in writing registering the trust or institution; ( ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant: Section 80G(5)(vi) : Deduction in respect of donations to certain funds, charitable institutions, etc. In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this Section:- XX ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 80G of the Act stipulates the conditions for application of Section 80G of the Act to the donations made to any institution or fund referred to in sub clause (iv) of Clause (a) of Sub Section (2). 8. The Tribunal while allowing the appeal of the assessee recorded the findings of fact that the representative of assessee-society appeared before CIT(E) with complete books of account and donation receipts etc. It was further held that the assessee submitted a list of donors containing their names and addresses. 9. The Tribunal took into consideration the fact that the assesseesociety has already been granted registration under Section 12AA of the Act and its activities have been found to be charitable. It is pertinent to note that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f application u/s. 80G of assessee as cited by Ld. C.I.T. (Exemptions) Chandigarh in para 3 of his impugned order is regarding the activities of the assessee. Ld. C.I.T. (Exemptions) Chandigarh was of the view that appellant is into business of selling art work and rejected the application of appellant u/s. 80G(5)(vi) and did not understand that appellant has been granted registration u/s. 12AA by Ld. C.I.T. Faridabad on 30.06.2014. Ld. CIT(A) also failed to note that while granting the registration u/s 12AA detailed scrutiny of activities of assessee were done by Ld. C.I.T. Faridabad which were of charitable in nature. If the activities of appellant would not have been charitable, registration u/s 12AA should be denied to the appellant. On ..... X X X X Extracts X X X X X X X X Extracts X X X X
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