9911796707
TMI Blog2025 (5) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Fees" and "Exam Fees" collected by the appellant for certain financial years do not fall under the definition of donations and therefore, provisions of section 80G of the Act are not found applicable under the facts and in the circumstances of the appellant's case. 3. The learned CIT[E] failed to appreciate that the impugned order refusing recognition u/s. 80G was passed in excess of jurisdiction by advesting to facts that were alien to the consideration for grant of recognition and therefore, theimpugned order passed deserves to be vacated and the appellant be granted recognition u/s. 80G of the Act. 4. The learned CIT[E] failed to appreciate that the order refusing recognition u/s. 80G of the Act was passed contrary to the provisions of the Act especially when the appellant has been granted registration u/s. 12A of the Act and therefore, the appellant ought to be granted recognition u/s.80G under the facts and in the circumstances of the appellant's case. 5. For the above and other grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the appeal may be allowed and Justice rendered and the appellant may be awarded costs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove letter dated 07/10/2024. 34 36 CIT[E] ANNEXURE - A :- 6[a] Copy of the Provisional recognition certificate U/s 80G of the Act in Form No. 10AC of the Act dated 31/12/2021 granted from 31/12/2021 to the assessment year 2024-25. 37 38 CIT[E] ANNEXURE - B :- 6[b] Copy of the Order for registration U/s 12A of the Act dated 24/09/2021 in Form No. 10AC of the Act. 39 41 CIT[E] ANNEXURE - C :- 6[c] Copy of the acknowledgement for having filed the return of Income along with the computation of total income, financials and audit report in Form No. 10BB of the Act for the assessment year 2024-25 42 60 CIT[E] 6[d] Copy of the acknowledgement for having filed the return of Income along with the Computation of total income, financials and audit report in Form No. 10BB of the Act for the assessment year 2023-24 61 80 CIT[E] 6[e] Copy of the acknowledgement for having filed the return of Income along with the financials and audit report in Form No. 10B of the Act for the assessment year 2022- 23 81 92 CIT[E] ANNEXURE - D :- 6[f] Cop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for services (i.e., for education provided) and not as a voluntary donation. Therefore, such payments do not qualify as donations and ar not eligible for deduction under Section 80G. Taxpayers seeking tax benefits for tuition fees paid for their children's education may consider Section 80C, which allows deduction for tuition fees paid to recognized schools, colleges, or universities, subject to specified conditions and limits. Misuse of Section 80G - Consequences for Educational Institutions An institution registered under Section 80G is allowed to issue donation receipts only for genuine voluntary donations. If such an institution: * Treats school fees or tuition payments as donations, and * Issues 80G receipts for them, this constitutes misuse or misrepresentation under the provisions of the Income-tax Act. Consequences of Wrongly Issuing 80G Receipts 1. Cancellation of 80G Registration: The Commissioner of Income-tax (Exemptions) has the authority to cancel 80G registration under Section 80G(5) if the institution is found to be misapplying receipts or violating conditions of approval. 2. Rejection of Donor's Claim: The Income Tax Department may di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. Further, the Section 80G(1) of the Act talks about that in computing the total income of the assessee, there shall be deducted in accordance with and subject to the provisions of this section. Sub-section (2) of section 80G of the Act specify the sum referred to in sub-section (1). Therefore, we are of the considered opinion that while considering the application of the assessee trust for grant of approval/registration u/s 80G of the Act, the ld. CIT(Exemptions) has on a wrong standpoint had relied upon & reproduced the provisions of section 80G(1) & 80G(2) of the Act, which in our view is from the perspective of donor claiming deduction u/s 80G of the Act. However, in the present case, the assessee trust has applied for the approval u/s 80G of the Act and therefore, the provisions of section 80G(1) and 80G(2) of the Act are not applicable in the case of the assessee. In our view, these provisions are applicable for claim of deduction of the sum paid by way of donation to the Charitable organization. We are of the considered opinion that for the purpose of granting approval u/s 80G of the Act, the relevant section is sub-section (5). The ld. Commissioner(Exemptions) after r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " and" omitted by Act 32 of 1994, Section 24 (w.e.f. 1.4.1994).] (v) [the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law, ] [Inserted by Act 11 of 1983, Section 39 (w.e.f. 1.4.1984).][* * *] [ Certain words omitted by Act 20 of 2002, Section 30 (w.e.f. 1.4.2003).][or is an institution financed wholly or in part by the Government or a local authority; ] [Inserted by Act 11 of 1983, Section 39 (w.e.f. 1.4.1984).][*] [ The word " and" omitted by Act 33 of 2009, Section 33 (w.e.f. 1.4.2009).] 6.2 In view of the above we are of the considered opinion that at the time of granting of approval u/s 80G of the Act, the authority has to satisfy herself that the chartable institution is established in India for charitable purposes and the activities of the assessee trus ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
