XAVIER UNIVERSITY,PIPILI vs. ITO(EEXEMPTIONS), BHUBANESWAR

This is an appeal filed by the assessee against the This is an appeal filed by the assessee against the This is an appeal filed by the assessee against the of the Pr. CIT(Exemptions), Hyderabad dated 31.10.2019 CIT(Exemptions), Hyderabad dated 31.10.2019 denying the benefit denying the benefit u/s. 80G(5)(vi) of the Act 80G(5)(vi) of the Act for the assessment year 2019-2020 2020.

Shri P.R.Mohanty, ld AR appeared for the assessee and Shri Shri P.R.Mohanty, ld AR appeared for the assessee and Shri Shri P.R.Mohanty, ld AR appeared for the assessee and Shri M.K.Gautam, ld CIT DR appeared for the revenue M.K.Gautam, ld CIT DR appeared for the revenue.

It was submitted by ld AR that the assessee has been It was submitted by ld AR that the assessee has been It was submitted by ld AR that the assessee has been denied the benefit u/s.80G by the ld benefit u/s.80G by the ld CIT(E) on the ground that books of account and ground that books of account and P a g e 1 | 3 bills and vouchers had not been produced before him. It was submission that for the purpose of recognition u/s.80G of the Act, the CIT(E) is required only to examine whether the objects of the trust are charitable in nature and not the application of income by trust when application of income is subject matter of assessment. It was his submission that the assessee has been granted registration u/s.12AA of the Act by the ld CIT(E), after satisfying the objects and activities of the assessee that it was meant for charitable purposes. It was submission that the assessee may be granted recognition u/s.80G of the Act.

In reply, ld CIT DR submitted that in the absence of books of account and bills and vouchers, the genuineness of the objectives and activity is in doubt, therefore, ld CIT(E) was right in denying the recognition u/s./80G.

We have considered the rival submissions. In this case, the assessee has been granted registration u/s.12AA of the Act, hence, the ld CIT (E) is satisfied about the genuineness of the activities of the assessee Trust. As the assessee has granted registration u/s.12AA of the Act, the requirement of producing physical books and accounts and bills and vouchers are not a requirement for granting recognition u/s.80G. Therefore, the order of the ld CIT(E) denying the recognition u/s.80G is set aside and the ld CIT(E) is hereby directed to grant the assessee recognition u/s.80G under the Income Tax Act, 1961.

The grant of recognition u/s.80G does not preclude the AO from doing the necessary verification in respect of compliance of the provisions of section 80G in the course of assessment.

In the result, appeal of the assessee is allowed.