SANJIVANI FOUNDATION,,AHMEDNAGAR vs. COMMISSIONER OF INCOME-TAX:1,,

आदेश / ORDER

PER ANIL CHATURVEDI, AM :

Assessee is a Trust which is stated to be formed on 10.10.2010 and registered by the Asst.Charity Commissioner,

Ahmednagar. Assessee made an application in form 10G to the CIT-

I, Pune for seeking approval u/s 80G(5) of the I.T Act. The request

for approval u/s 80G(5) was rejected by Ld.CIT vide order

dt.07.11.2014 for the following reasons :

(1) Assessee had failed to file the notice of accumulation

of income before the AO.

(2) With regard to e-bus facility, though the assessee

had provided the names of students to whom the

computer education was provided through e-bus

facility but no log book for the journeys performed

was produced, no details in respect of eye check-up

camps that were held by the assessee jointly with the

Trust and colleges were furnished.

He accordingly rejected the request of approval of under Sec.80G of

the Act. Aggrieved by the order of Ld. CIT, assessee is now in

appeal before us and has raised the following grounds :

“1. That the rejection order passed u/s 80G(5)(vi) of the Act, is against the law and to the facts of the case. 2. That the Ld.CIT was further wrong for not appearing that the appellant society is already registered u/s 12A(a) of the Income Tax Act, 1961, for doing charitable activities and also fulfil the conditions laid down u/s 80G(5)(vi) of the Act. 3. That the rejection order passed u/s 80G(5)(vi) of the Act is further bad in law, as no reasonable and proper opportunity was properly afforded to the appellant society to present their case before the Ld.CIT.”

and Ld.CIT and further submitted that while considering the

approval under 80G of the Act, the enquiry should be confined to

finding out if the Institute satisfies the prescribed conditions

mentioned therein. He further submitted that as far as the aspect

of application of income is concerned, it has to be examined by the

AO at the time of framing assessment. He further submitted that

assessee has been granted approval u/s 12A of the Act and the same

is not withdrawn. He therefore submitted that Ld.CIT has wrongly

denied the registration and prayed that assessee be granted approval

u/s 80G of the Act. Ld.D.R. on the other hand, supported the order

of Ld.CIT.

on record. The issue in the present case is with respect to rejecting

the request of assessee for registration of Trust u/s 80G of the Act.

Before us, it is assessee’s submission that it is registered u/s 12A of

the Act and the approval has not been withdrawn. The aforesaid

submission of the assessee has not been controverted by the

Revenue. We find that Hon’ble Punjab and Haryana High Court in

the case of Sonepat Hindu Educational and Charitable Society Vs.

CIT (2005) 278 ITR 262 (P&H) has held that Registration of an

Institution u/s 12A of the Act is sufficient proof of it being

established for charitable purposes. It further held that in

continuing the purpose of the Trust for the purposes of approval

u/s 80G of the Act, it is important to find out the real purpose of

establishing the Trust rather than just relying on the objects,

memorandum and articles of the Trust Deed of the Trust. It further

observed that if Commissioner of Income Tax is satisfied that the

objects of the Trust are charitable, approval should not be denied on

mere technicalities.

granting approval u/s 80G of the Act, what is to be examined is the

object of the Trust and so far as the aspect of income is concerned,

same can be very well examined by the AO at the time of framing

assessment and for this proposition, we find support from the

decision of Hon’ble Gujarat High Court in the case of CIT Vs. Pujya

Shri Jalarambapa and Matushri Virbaima Chentable Trust reported

in (2015) 55 Taxmann. com 52 (Guj).

hereinabove, we are of the view that Commissioner of Income Tax

was not justified in refusing the registration u/s 80G of the Act. We

therefore direct the Commissioner of Income Tax to grant

registration u/s 80G of the Act. Thus, the grounds of the assessee

are allowed.

Order pronounced on 10th day of January, 2018.

Sd/- Sd/- (SUSHMA CHOWLA) (ANIL CHATURVEDI) �या�यक सद�य / JUDICIAL MEMBER लेखा सद�य / ACCOUNTANT MEMBER

पुणे Pune; �दनांक Dated : 10th January, 2018. Yamini

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to :

आदेशानुसार/ BY ORDER,स �या // True Copy //

व�र�ठ �नजी स�चव / Sr. Private Secretary आयकर अपील�य अ�धकरण ,पुणे / ITAT, Pune.