Case Law Details

Case Name : Govats Foundation Vs ITO (Exemption) (ITAT Hyderabad)
Appeal Number : ITA No. 324/HYD/2015
Date of Judgement/Order : 12/06/2015
Related Assessment Year :
Brief of the Case

In the case of Govats Foundation v ITO (Exemption) it is held by ITAT-Hyderabad  that the approval u/s 80G(5) could be granted to charitable institution if the certificate granted u/s 12A has not been withdrawn.

Facts of the Case

The assessee in the present case is a society doing charitable work by spreading awareness in the society about the importance of cows. Registration under S.12A was granted. The assessee society filed an application seeking approval under S.80G(5)(vi) of the Act. The assessee was called upon by the learned Commissioner (Exemptions) to explain the nature of its activities, where it was submitted that more than 1,000 collection boxes were installed at various places for the collection of amount which was used in making payments to the suppliers of grass and kutti on monthly basis. But, according to learned Commissioner(Exemptions) these collections were anonymous donations, are not eligible for exemption u/s11, by virtue of the provisions of Section 115BBC, and the condition stipulated in clause (1) of sub-section (5) of Sec. 80G, itself was not satisfied.

Contention of the Assessee

The Assessee submitted before the Ld. Commissioner (Exemptions) that collection boxes were kept in control of particular individuals, and therefore, the donors were clearly identifiable as well as sometimes payments were made by cheques.

It was submitted on the behalf of the Assessee that registration of the society u/s 12A have not been withdrawn till date. Therefore, approval under Sec. 80G(5) could not be denied to the assessee society. The Assessee relied on on the decision of the Delhi Bench of this Tribunal in the case of Maharshi Dayanand Education Society, New Delhi V/s. CIT (ITA No.218/Deld/2009 dated 24.2.2011), wherein certificate granted to the assessee under S.12A treating it as a charitable institution was subsisting and was not shown to have been withdrawn till the date of the order of the Tribunal and renewal of approval under Sec. 80G(5) could not be denied to the assessee.

Contention of the Revenue

The Revenue contended that the condition stipulated in Sec. 80G(5)(i) having not been satisfied.

Judgement of the Tribunal

The Hon’ble Tribunal while relying on the Judgement of the Delhi Tribunal, held that the ratio of this decision is squarely applicable to the present case, wherein registration under S.12A has been granted to the assessee society and there is nothing brought on record to show that the same has been withdrawn. Further, the Hon’ble Tribunal directed the approval under Sec. 80G(5) be granted to the assessee society.

Accordingly, appeal of the Assessee was allowed.

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