VISHWANATHAN MEDICAL FOUNDATION,NEW DELHI vs. CIT(EXEMPTIONS), NEW DELHI

This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Exemption], New Delhi dated 29.10.2018 relating to the denial of approval u/s 80G of the Income-tax Act, 1961 [hereinafter referred to as 'The Act'].

The solitary grievance of the assessee is that the ld. CIT(E) erred in rejecting the application for registration u/s 80G(5) of the Act on the ground that the assessee has not received donation till date.

None appeared on behalf of the assessee. We decided to proceed ex parte. The ld. DR was heard at length who placed strong reliance on the order of the ld. CIT(E).

Facts culled out from the order show that the applicant was granted registration u/s 12AA of the Act vide order dated 03.10.2018. An application was moved by the assessee u/s 80G of the Act. The ld. CIT(E), after perusing the details found that the assessee has not received any donations till date and it is funding its activities from its internal sources and, therefore, the assessee has no need to receive any donation.

Section 80G(5)(vi) of the Act reads as under:

As mentioned elsewhere, the assessee is an approved society which has been granted registration u/s 12AA of the Act. Merely because the assessee has not received any donation during the period under consideration cannot be a reason for denial/rejection of application u/s 80G of the Act.

Further, the second reason given by the ld. CIT(E) that the assessee is generating income from its internal sources to meet out its activities can also not be a reason for denial. Considering the facts of the case in totality qua the reasons given by the ld. CIT(E) we do not find any merit in the order of the ld. CIT(E). We, accordingly, direct the ld. CIT(E) to grant 80G certificate.

In the result appeal of the assessee in is allowed.