Mumukshu Mandal Vs CIT (Punjab and Haryana High Court)
Punjab and Haryana High Court held that the construction of Public Library would also form part of charitable function and any work done with the same purpose is eligible for granting exemption under Section 80G of the Income Tax Act, 1961.
Facts- The petitioner is a Society duly registered under the Societies Registration Act, 1860 and engaged in the social/charitable activities. The petitioner Society had also been granted certificate by the Income Tax Department, since 1974, regarding its entitlement for deduction u/s. 80G of the 1961 Act.
The petitioner Society has also been granted registration in terms of Section 12AA of the 1961 Act. The petitioner Society filed an application in Form No. 10G for renewal of exemption under Section 80G(5) of the 1961 Act, for further period from 01.04.2005 to 31.03.2008, before respondent No. 1 – CIT.
CIT declined the request made by the petitioner – society, by saying that it is not carrying on any charitable activity as genuineness of the donations and its use could not be proved by the petitioner – society. Therefore, the request for renewal of exemption under Section 80G(5) of the 1961 Act, has been rejected. Hence, the petitioner – society is before this Court.
