2023 (4) TMI 948 - AT - Income Tax

Approval u/s 80G - application of the assessee was rejected by Ld.CIT(Exemption) by making various observations and drawing adverse conclusion about the accounts of assessee society - HELD THAT - CIT(Exemption) has given a specific finding regarding accounts of the assessee society which gives a distorted picture and does not inspire confidence about the genuineness of the activity of the assessee society. The assessee society is under legal obligation to satisfy the CIT(Exemption) about the genuineness of its activity. CIT(Exemption) has given finding regarding two sets of accounts related to donation being maintained by the assessee. In the absence of any rebuttal by the assessee society, we do not see any reason to interfere in the findings of authorities below, the same is hereby affirmed. Grounds raised by the assessee in this appeal are hence, dismissed.

Summary

Issues:
The appeal challenging the rejection of approval u/s 80G by Ld. CIT(Exemption) for the assessment year NIL.

Grounds of Appeal:
1. The order rejecting the application u/s 80G is bad in law and facts.
2. The rejection without giving an opportunity of being heard violates natural justice.
3. The order is beyond the statutory period prescribed in the Act.
4. The order violates statutory conditions and procedures.
5. The rejection despite fulfilling all conditions u/s 80G.
6. Rejection based on extraneous considerations.
7. Drawing adverse inference despite providing evidence.
8. Misinterpreting financials.
9. Request for leave to add, amend, or alter grounds of appeal.

Judgment Details:
The appeal was filed against the order of Ld. CIT(Exemption) rejecting the application for approval u/s 80G. The assessee did not attend the hearing, and the appeal was disposed of based on available records.

Facts:
The assessee applied for approval u/s 80G, which was rejected by Ld.CIT(Exemption) citing manipulations in donation accounts and lack of transparency in financial activities.

Arguments:
Ld. CIT DR argued that the rejection was justified due to manipulations in accounts and lack of transparency in financial transactions.

Findings:
Ld.CIT(Exemption) made adverse findings against the assessee, highlighting discrepancies in donation accounts, unverifiable salary payments, accumulation of funds, lack of transparency, and failure to prove eligibility for approval u/s 80G.

Conclusion:
The findings of Ld.CIT(Exemption) were upheld as the assessee failed to rebut the adverse findings or provide contrary evidence. The rejection of approval u/s 80G was affirmed, and the appeal was dismissed.

Outcome:
The appeal challenging the rejection of approval u/s 80G was dismissed by the Tribunal on 20th April 2023.