MAHARAJA AGARSAIN EDUCATION SOCIETY,HISSAR vs. CIT(EXEMPTION), CHANDIGARH

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ITA 7951/DEL/2018Status: DisposedITAT Delhi31 July 2023AY 2018-192 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found no legal error in the CIT's order refusing the approval. Therefore, the denial of exemption under Section 80G was affirmed.

What were the facts?

The assessee, Maharaja Agarsain Education Society, appealed against the denial of exemption under Section 80G(5)(vi) by the CIT(Exemption). The CIT denied the exemption, stating the assessee failed to discharge its onus to prove eligibility.

What were the issues?

Whether the CIT erred in denying 80G exemption by focusing on the source of funds rather than the application of funds for charitable objects. Whether the assessee, being registered under 12AA and covered by Section 2(15), fulfilled the conditions for 80G(5)(vi) exemption.

Which sections of the Income-tax Act were involved?

Section 80G(5)(vi),Section 12AA,Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI

Before: Sh. C. M. GargDr. B. R. R. Kumar

Hearing: 19.07.2023Pronounced: 31.07.2023

ORDER

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the assessee against the order of ld. CIT(E), Chandigarh dated 28.09.2018 passed u/s 80G(5) of the Income Tax Act, 1961.

2.

The assessee has raised the following grounds of appeal:

1 That the Id. Commissioner of Income Tax (Exemptions) has erred in law and facts of the case in denying the exemption u/s 80G(5)(vi) of the Income Tax Act, 1961 while considering source of funds rather than appreciating the fact that the application of funds towards objects of the Trust which are Charitable in nature" is required to be considered in order to decide the genuineness of the activities of the Trust while granting exemption u/s 80G of the Act to the assessee and as such, the exemption may please be granted.

2. That the ld. Commissioner of Income Tax (Exemptions) has erred in law and facts of the case without appreciating that the assessee is a registered trust u/s 12AA of the Income Tax Act, 1961 and covered by the provisions of Section 2(15) of the Maharaja Agarsain Education Society Act. Also, the assessee has fulfilled the conditions for exemption u/s 80G(5)(vi) of the Act. As such, the exemption may please be granted.”

3.

The assessee filed appeal on November 2018. Proceedings were conducted on 18.04.2019, 02.02.2021, 07.02.2022, 08.02.2022, 24.07.2022, 27.07.2022, 02.11.2022, 02.02.2023, 24.03.2023, 10.07.2023, 19.07.2023. Nobody on behalf of the assessee attended the proceedings. Hence, it is decided to pass the order based on the record available before us.

4.

The ld. CIT(E), Chandigarh has denied approval u/s 80G of the Income Tax Act, 1961 on the grounds that the assessee has failed to discharge its onus to prove the claim and eligibility.

5.

On going through the order of the ld. CIT(E), we do not find any legal infraction in refusing the approval and hence the same is hereby affirmed.

6.

In the result, the appeal of the assessee is dismissed. Order Pronounced in the Open Court on 31/07/2023.

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