2010 (5) TMI 684 - AT - Income Tax

Summary

Issues involved: Denial of renewal of registration under section 80G for charitable activities.

Summary:
The appeal was filed against the Commissioner of Income-tax's order denying renewal of registration under section 80G for engaging in charitable activities like providing free education and professional training. The Commissioner rejected the renewal application citing that the activities did not fall under the definition of charitable activity u/s 2(15) of the Income-tax Act, 1961. The appellant argued that the society's activities were fully charitable, providing free education and training to the poor and needy. The appellant contended that the refusal was unjustified as the society operated on donations and did not engage in profit-making activities.

The Tribunal found the Commissioner's reasoning flawed, stating that the activities were indeed charitable in nature, aimed at providing education to the underprivileged to make them self-dependent. The Tribunal noted that the society's registration under section 12A remained valid, and no evidence was presented to refute the appellant's claims. The Tribunal directed the Commissioner to grant renewal of the 80G certificate to the appellant.

The Tribunal distinguished a previous case cited by the Commissioner, where the society's activities were profit-oriented, unlike the present case where the appellant's activities were genuinely charitable. Consequently, the appeal was allowed, and the appellant's renewal of registration under section 80G was granted.