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TMI Blog2019 (6) TMI 784X X X X Extracts X X X X X X X X Extracts X X X X ..... E) as to the mandatory requirements for according approval u/s 80G of the Act. By now all these documents must be ready with the applicant society, so to meet with the ends of justice, applicant society who is claiming that it is into charitable activities since 1994 must be given an opportunity to produce all documents discussed in the preceding paras before ld. CIT (E). So, the case is remanded back to ld. CIT (E) to decide afresh after providing an opportunity of being heard to the applicant society. Appeal filed by the applicant society is allowed for statistical purposes. - ITA No.6843/Del./2018 - - - Dated:- 13-6-2019 - Shri R.K. Panda, Accountant Member And Shri Kuldip Singh, Judicial Member For the ASSE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat its activities are not wholly transparent; that applicant society s indulgence in cash transaction does not make the activities amenable to the proper verification; that the real purpose of applicant society for which the approval u/s 80G is being sought is merely to seek donation and to add it to its surpluses. 3. Feeling aggrieved, the assessee has come up before the Tribunal by challenging the impugned order passed by the ld. CIT (E) by way of filing the present appeal. 4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purposes of such business; and (c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business; (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; (iii) the institution or fund is not express ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1st day of March, 2009; and (b) approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009. 7. Bare perusal of the provisions contained u/s 80G, extracted above, goes to prove that before according approval u/s 80G of the Act, the ld. CIT (E) is required to satisfy himself that the applicant society has been established with real charitable purpose and in order to satisfy himself, he is empowered to summon numerous documents viz. separate books of accounts, banks statements, regular accounts of receipts of funds and expenditure, etc.. To satisfy himself, the ld. CIT (E) has issued a detailed questionnaire to the assessee to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransactions which cannot be subjected to verification. 11. Ld. CIT (E) in para 8 of the impugned order also mentioned that, the applicant society has not explained the target group from whom the donation would be sought/received, the exact contours of expansion they wish to undertake and the quantum of finances that would be necessary and that the list of people who have been shown the inclination to donate to the applicant society. 12. Moreover, ld. CIT (E) noticed that the applicant society has accreted huge surpluses and accumulated in the form of FDRs which reached upto ₹ 2.06 crores which shows that they are not willing to utilize the same for expansion. Applicant society has also not brought on re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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