“section 80G approval”
The decision most relied on for section 80G approval is India Trade Promotion Organization v. DGIT(Exemption) (371 ITR 333), cited in 128 judgments on BharatTax.
Leading authorities on section 80G approval
An institution engaged in the advancement of general public utility retains its charitable character and eligibility for exemptions under Section 11 or approval under Section 10(23C)(iv) provided profit is not its predominant motive, even if it generates incidental surpluses or collects fees.
Whether there was sufficient cause for delay in making applications for registration under section 12A and 80G is always a question of fact, and contumacious conduct by the assessee must be established for levying penalty under section 271C for non-deduction of TDS.
The weighted deduction for scientific research expenditure under Section 35(2AB) is allowable, clarifying that the requirement for the prescribed authority to approve or quantify the expenditure from year to year became effective only from April 1, 2016, through amendments to Rule 6(7A)(b).
Registration under Section 12A and approval under Section 80G are distinct from assessment; issues relevant to assessing income under Section 11 cannot be grounds for rejecting an application for registration or approval.
The delay in filing an application for approval under section 10(23C) cannot be condoned by the CIT (Exemption) if it is filed beyond the prescribed time limit, as this decision was affirmed by the Kolkata Tribunal in Bishnupur Public Education Institute.
The scope and amplitude of Section 10(23C)(vi) of the Income-tax Act and its applicable provisos, rules, and forms are the subject of examination in relation to applications for approval.
Registration under Section 12A or 12AB of the Income-tax Act is a mandatory pre-condition for obtaining approval under Section 80G of the Act. Consequently, if an assessee lacks valid registration under Section 12A/12AB, their application for approval under Section 80G is liable to be rejected.
Donations made towards Corporate Social Responsibility (CSR) expenditures are eligible for deduction under Section 80G of the Income Tax Act, 1961, provided the recipient institution is approved under Section 80G and other conditions are met. The choice of recipient for CSR funds remains discretionary even if the spending quantum is statutorily mandated.
