TMI Blog2017 (9) TMI 1812X X X X Extracts X X X X X X X X Extracts X X X X ..... by assessee for assessment year 2013-14 and 2016-17 was not accepted by the department. There is no violation on the part of assessee which could lead to the withdrawal of registration u/s 12AA of the Act. Once the fact that assessee was charitable institution is established the Revenue Authorities at the time of granting registration u/s 80G of the Act can not deny registration u/s 80G of the Act, in view of the judgment of Sonepat Hindu Educational Vs. CIT [ 2005 (5) TMI 52 - PUNJAB AND HARYANA HIGH COURT] wherein held that registration of the institution u/s 12AA was itself a sufficient proof of the fact that the institution is established for charitable purpose. In the instant case, the Commissioner had not found that the objects ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent : Sh. Rahul Dhawan (D. R.) ORDER PER T. S. KAPOOR (AM): This is an appeal filed by assessee against the order of Ld. CIT(E), Chandigarh dated 31.01.2017. 2. The assessee has taken various grounds of appeal; however, the crux of grounds of appeal is the action of Ld. CIT(E) by which he has rejected the application of assessee u/s 80G of the Act. 3. At the outset, the Ld. AR submitted that the assessee society is duly registered u/s 12AA with Commissioner of Income Tax Bathinda, and it was set up to run various educational institutions. It was submitted that 12AA registration is still intact and has not been withdrawn. He further submitted that assessee was already availing benefit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of audited balance sheet and income and expenditure accounts for the assessment year 2013-14 to 2016-17 was placed. In view of these facts and circumstances, the Ld. AR submitted that the decision of Ld. CIT(E) to reject application for registration u/s 80G is contrary to the law and facts and circumstances of the case. The Ld. AR commenting upon the objections raised by Ld. CIT(E) submitted that the settled principles of law are that at the time of granting approval u/s 80G of the Act, the objects of the applicant are to be considered and so far as the other aspects are concerned, they can be examined by the Assessing Officer during assessment proceedings. Reliance in this respect was placed on an order of Hon'ble Gujarat Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uses and was getting its funds in the shape of FDRs, the Ld. AR submitted that FDRs mentioned by Ld. CIT(E) were in fact fixed deposits which were securities with Baba Farid university of Health Sciences and other departments and were not available with the appellant society which could be invested. The Ld. AR submitted that the Hon'ble Punjab Haryana High Court in the case of Gulab Devi Memorial Charitable Trust 77 taxmann.com 10 has held that even if substantial surplus are generated and the same are ploughed back into the institutions then it would not loose its charitable character. The Ld. AR further relied on a recent judgment of Amritsar Bench in the case of M/s Sant Girdhar Anand Parmhans Sant Ashram Vs. CIT(E) Chandigarh wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Once the fact that assessee was charitable institution is established the Revenue Authorities at the time of granting registration u/s 80G of the Act can not deny registration u/s 80G of the Act, in view of the judgment of Hon'ble Punjab Haryana High Court in the case of Sonepat Hindu Educational Vs. CIT reported in 147 taxman page 1, wherein the Hon'ble Court has held that registration of the institution u/s 12AA was itself a sufficient proof of the fact that the institution is established for charitable purpose. The relevant findings of the Hon'ble Court are reproduced as under: Under section 80G, a donor can claim deduction in computing, his total income in respect of donations made by him to various funds or in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to find out the real purpose, as distinguished from the ostensible purpose of establishment of the society or the trust. If the Commissioner is convinced that the purpose of the society or the trust is not charitable, nothing debars him from denying the approval, but, at the same time, if he is satisfied that the objects of the trust, as set out in the deed of declaration, are charitable, then having regard to the object of the provision, the approval should not be denied on mere technicalities. As a matter of fact, the power to grant or negate the claim for approval is coupled with a duty. [Para 14] In the instant case, the Commissioner had not found that the objects of the assessee, established in India, as set out in its memor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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