Case Law Details
Raghu Nath Rai Memorial Educational & Charitable Trust Vs CIT(E) (ITAT Chandigarh)
We do not find the rejection of application for grant of approval u/s 80G in the present case by the Ld.CIT(E), solely for the reason that the assessee society has sufficient disposable funds available with it and no reason was given for seeking funds by way of donation, as appropriate. The provisions of section 80G(5) of the Act as reproduced above are very clear, setting out conditions which are to be complied with for the purpose of being eligible for approval u/s 80G of the Act. The sufficiency of funds available with an institution seeking the approval is no where mentioned as condition to be looked into before granting approval.
The Ld.CIT(E) has not given any cognizance to the above facts and has in fact not examined the ligibility of the assessee to grant of approval vis a vis the conditions set out in section 80G(5) of the Act,at all. We, therefore, consider it fit to restore the issue back to the Ld.CIT(E) to reconsider the application for grant of approval strictly in the light of the conditions set out in section 80G(5) of the Act and thereafter pass an order in accordance with law. We may add that the assessee be given due opportunity of hearing in this regard.
FULL TEXT OF THE ITAT JUDGMENT
This appeal has been preferred by the assessee against the order of Ld. Commissioner of Income Tax(Exemptions), Chandigarh (hereinafter referred to as (‘Ld.CIT(E)’ dated 28.3.2017 rejecting the assessee’s application for approval u/s 80G of the Income Tax Act, 1961 (in short ‘the Act’).
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