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TMI Blog2017 (5) TMI 1427X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was not shown in the account books maintained by the respondent assesssee. It has come on record that the respondent assessee admitted before the Income Tax Settlement Commission that the cash found during the search and seizure operations amounting to ₹ 11.25 lacs belonged to it and that the receipts relating to this cash were not recorded in the account books. The above very fact clearly establishes beyond any doubt that the respondent assessee was not maintaining regular accounts of its receipts and expenditure. It is precisely on this ground that the application for renewal of approval/registration has been rejected. Assessee failed to fulfill one of the essential conditions for grant of renewal of approval/registration u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred to as the Act) which was valid only upto 31st March 2004. The assessee respondent applied for renewal of the exemption under Section 80 G (5) of the Act on 28.4.2004. The said application has been rejected by the Commissioner by an order dated 29.4.2011 inter alia on one of the grounds that during the search and seizure operations an unaccounted cash amount of ₹ 11.25 lacs was recovered and as such the assessee respondent was not properly maintaining its books of accounts. Accordingly, the respondent assessee does not satisfies condition (iv) of Section 80 G (5) of the Act. The aforesaid rejection order was challenged by the assessee respondent before the Income Tax Appellate Tribunal who allowed the appeal and held that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er alia is to exempt income derived by non profit making educational institution of charitable nature. On the other hand Section 80 G of the Act provides for deduction of certain donations to specified funds or charitable institutions etc.,in computing the total income of the assessee (doner) for the purposes of levying tax. It inter alia vide Sub-section (5) exempts the donations made to any institution or fund referred to Sub-clause (iv) of clause (a) of Sub-section 2 of Section 80 G of the Act provided such institution is established in India for charitable purposes and fulfils some additional conditions as specified therein. The institution referred to in Sub-section 2 (a) ( (iv) of Section 80 G of the Act refers to any fund or an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or institution or any university or other educational institution or any hospital or other medical institution being profits and gains of business unless the business is incidental to the attainment of its objectives and separate books of account are maintained by it in respect of such business. Section 80 G (5) (iv) This Section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely:- (i) .......... (ii).......... (iii).......... (iv) the institution or fund maintains regular accounts of its receipts and expenditure. The VIIth proviso of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the account books. The above very fact clearly establishes beyond any doubt that the respondent assessee was not maintaining regular accounts of its receipts and expenditure. It is precisely on this ground that the application for renewal of approval/registration has been rejected. In view of the aforesaid facts and circumstances, as the respondent assessee failed to fulfil one of the essential conditions for grant of renewal of approval/registration under Section 80 G of the Act, we are of the opinion that the tribunal committed manifest error of law in setting aside the order of the Commissioner and in directing for grant of registration under Section 80 G (5) to the respondent assessee. The fulfilment of conditions under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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