TMI Blog2019 (9) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... s granted registration u/s 12AA and that too, on examining the Institution's objects and the genuineness of its activities, and such registration continues uninterrupted hitherto, and inspite of the fact that it remains undisputed that the appellant duly fulfills all the conditions prescribed u/s 80G(5)(i) to (v) - Decided in favour of assessee. - ITA No.647/LKW/2018 - - - Dated:- 20-9-2019 - Shri. A. D. Jain, Vice President And Shri T. S. Kapoor, Accountant Member For the Appellant : Shri Samrat Chanrda, FCA For the Respondent : Shri S. K. Madhuk, CIT (DR) ORDER PER A. D. JAIN, V.P.: This is assessee s appeal against the order of the ld. CIT (Exemption), Lucknow dated 13/7/2018, passed under section 80G(5)(vi) of the Act. The following grounds have been raised: 1. Because, on the facts and in the circumstances of the case, the learned Commissioner of Income Tax (Exemption) is not justified in dismissing the appeal of the assessee u/s 80G(5) of the Income Tax Act, as no due and proper opportunity of hearing was afforded before the passing of the impugned o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arried out by the applicant as claimed in the trust deed. There is literally no material available on record so as to form even the slightest satisfaction regarding the genuineness of the activities carried out, if any, by the applicant. The applicant needs to retrospect the fact that mere submission of the trust deed carrying high sounding lofty ideals does not make a trust or institution eligible for exemption which has been specifically targeted towards institutions carrying out genuine charitable activities and furthering the cause of charity. It is imperative on the part of the applicant society to provide corroborating evidences that form the satisfaction regarding the genuineness of the activities of the applicant which is mandated by law. In the absence of such satisfaction, the applicant loses it its eligibility for consideration for according the said registration. In the instant case neither has the applicant provided any ratification by providing the books of accounts nor have any vouchers been provided for the various expenses with respect to various activities as claimed to have been carried out. Neither was the applicant able to corroborate its activities/expenses th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication to interfere in these orders of learned CIT . 7. In view of the above discussion, it is clear that the applicant is not engaged in any charitable purpose which is the prerequisite for approval u/s 80G of the Act. Under these circumstances and for these reasons, I hereby reject the application of the society u/s 80G(5) of the Income Tax Act 1961. 3. The ld. counsel for the appellant Institution has contended that the ld. CIT (Exemption) has erred in law as well as on the facts and circumstances of the case in rejecting the application filed by the appellant seeking grant of approval under section 80G(5)(vi) of the Act; that the assessee being an entity duly registered u/s 12AA of the Act, there was no occasion for the Ld. CIT (Exemption) to treat the same activities as not being charitable in nature, as all such reasons were duly examined by the ld. CIT(Exemption) while granting registration under section 12A of the Act, vide Certificate dated 9/2/2017; that there is no change in the nature of activities performed by the assessee and the genuineness of the activities has also not been doubted; that on the facts and in the circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n justified in submitting that the benefit cannot be granted, but where the application for registration is submitted and registration has been granted, the benefit cannot be denied. 7. In N.N. Desai Charitable Trust vs. CIT , 246 ITR 452 (Guj), it has been held, inter alia, that while considering the certification of the Institution for the purpose of Section 80G, the inquiry should be confined to finding out if the Institution satisfies the prescribed conditions as mentioned in Section 80G; that it is well settled that at the time of granting the application u/s 80G, what is to be examined is whether the trust is registered u/s 12A and the objects of the trust; that so far as the aspect of income is concerned, the same can be very well examined by the Assessing Officer at the time of framing assessment; and that the Authority examining the question whether a trust/Institution is eligible to be certified for the purposes of Section 80G, is not to act as an AO. 8. N.N. Desai , (Supra) was followed by the Pune ITAT in B.P.H.E. Society vs. ITO , in ITA No. 111/PN/2010, vide order dated 30.08.2011, holding that when the CIT is to examine an applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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