2018 (2) TMI 1770 - HC - Income Tax

Grant of approval u/s 80G - proof of genuineness of charitable activity - Tribunal recorded that the condition regarding approval of the trust under Section 80G(5) are satisfied - Held that - Tribunal while examining the matter has recorded findings to the contrary that approval under Section 80G was renewed for the period 01.04.2001 to 31.03.2003 - the application u/s 80G was accompanied by income and expenditure account for financial years 2006-07, 2007-08 and 2008-09 and the accounts reflected that the assessee had been carrying on charitable activities by way of providing food to the poor, medical aid and blankets and clothes to them. It also recorded that the trust had been registered under Section 12A and the registration has not been withdrawn till date. Assessee had necessarily satisfied the condition for the grant of a certificate under Section 12A of the Act which require that the objects of the society which seeks to be declared as a charitable had to satisfy that the aim and objects are charitable in nature and secondly that the activities are genuine. The Tribunal, therefore, taking into account that for at least three years details have been provided to show that the charitable activities were being carried on and also in view of the fact that the registration under Section 12-A of the Act continued in favour of the assessee, the order passed by the Commissioner was not justified. - Decided in favour of assessee.

Summary

Issues:
1. Interpretation of Section 80G of the Income Tax Act regarding the grant of relief to the assessee.
2. Examination of the genuineness of charitable activities by the Commissioner.
3. Justification of granting benefit under Section 80G when the trust's existence at the given address is in question.

Analysis:
1. The appeal under Section 260-A of the Income Tax Act was filed against the order of the Income Tax Appellate Tribunal regarding the grant of relief to the assessee under Section 80G of the Act. The questions of law revolved around the genuineness of charitable activities and the satisfaction of the CIT regarding the same. The Tribunal found that the trust was registered under Section 12A and had been carrying out charitable activities, thus satisfying the conditions for approval under Section 80G.

2. The Commissioner rejected the application for approval under Section 80G citing lack of proof of activities by the assessee. However, the Tribunal noted that the trust had been registered under Section 12A, and the accounts reflected charitable activities. The Tribunal emphasized that the Commissioner did not specify the details required for proving genuineness, while the assessee had satisfied the conditions for charitable status under Section 12A. The Tribunal found the Commissioner's rejection unjustified.

3. The Tribunal's decision was based on the assessee's provision of details showing charitable activities for three years, coupled with the continuous registration under Section 12A. The Tribunal concluded that the Commissioner's order was not justified, leading to upholding the decision in favor of the assessee and against the department. The judgment dismissed the writ petition accordingly, affirming the Tribunal's findings.

This detailed analysis of the judgment highlights the key legal issues, interpretation of relevant sections of the Income Tax Act, and the Tribunal's reasoning in determining the validity of granting relief under Section 80G to the assessee.