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TMI Blog2018 (3) TMI 1893X X X X Extracts X X X X X X X X Extracts X X X X ..... eness of its activities, and such registration continues uninterrupted hitherto, and inspite of the fact that it remains undisputed that the appellant duly fulfils all the conditions prescribed u/s 80G(5)(i) to (v) of the Act. Accordingly, the order under appeal is reversed and it is directed that the appellant be granted approval u/s 80G of the Act forthwith. - ITA No. 173 /AGR/2017 - - - Dated:- 8-3-2018 - Shri A.D. Jain, Judicial Member And Dr. Mitha lal Meena, Accountant Member Appellant by: Shri Anurag Sinha, Advocate Respondent by: Shri Rajarshi Dwivedi, CIT DR ORDER A.D. Jain, 1. This appeal is directed against the order dated 23.02.2017 passed by the CIT(E) rejecting the application seeking grant of approval u/s 80G(5)(vi) of the I.T. Act, 1961. The following grounds have been raised: 1. BECAUSE, the learned 'CIT (Exemption)' has erred in law as well as in the facts and circumstances of the case in rejecting the application filed by the 'appellant1 seeking grant of approval under section 80G(5)(vi) of the 'Act'. 2. BECAUSE, the learned 'CIT(Exemption)' erred in drawing adverse conclusion in respect of D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pprehension that mere filing of documents, including those that are completely irrelevant to the present proceedings, somehow proves his claim. This is riot what is Iaid down by the law 3nd the relevant material needs to be examined in the light of the provisions of the Act. 4, On perusal of the material available, it can been seen that the applicant society has received hefty donations to the tune of ₹ 1,82,000/- for the F.Y. 2015-16. The applicant however has failed to furnish any details regarding the source of funds and donations for the F.Y, 2015-16, The applicant has failed to provide the complete addresses and the PANs of the alleged donors. The fact that the applicant is trying to obscure the real identity of the donors, and has deliberately not submitted any details to divulge the same clearly goes to prove that there is a mala fide attempt on part of the applicant to introduce the unaccounted money into the trust income as donations. This clearly evinces the fact that the failure on the part of the applicant to verify his donors is an attempt to introduce money sourced out of unknown sources into the trust and to plant it as a part of the funds of the trust. On p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of charity. The applicant has shown bogus and fake expenses with a view to inflate its expenditure and thereby hide its ulterior motive of channelizing grants for purposes other than charity. No corroborating evidences could be produced by the applicant society which could hold testimony to its claims of charity. The entire application is based on mere recital of fake claims of charity without any actual activity being carried out. It is clearly evident from the material available on record that the applicant has not even intended to make use of the time and funds at hand to carry out any act of charity. This inactivity cannot be regarded as an excuse for the so called adolescence as pretended by applicant to hide its real motive of securing tax benefits under the garb of charity without performing any genuine charitable activity. The above facts clearly state that the applicant trust has done a mere fake declaration with respect to charity and there is no genuineness in the activities as claimed to be carried out by the applicant. This proves detrimental to the application of the trust and clearly illustrates that the applicant trust has not made a case for according the said regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f non-furnishing of addresses and PANs of the donors and evidence of 'uniform distribution to poor students', etc.; that the rejection is based on all such reasons as were duly examined by the ld. CIT(Exemption) while granting registration under section 12A of the Act vide Certificate dated 05.04.2016 by the same learned CIT(Exemption); that the learned CIT (Exemption) erred in law in rejecting the application of the Society for grant of approval under section 80G(5)(vi) on irrelevant considerations, ignoring the provisions of law that approval under that section could be refused if, and only if, the conditions laid down under clause (i) to (v) of sub-section (5) of section 80G of the Act were not met by the applicant; and that the approval has been denied without affording due and reasonable opportunity of hearing and the impugned order has been passed on the same day on which the case was fixed for hearing, which is in direct conflict with the decision of the Hon'ble Madras High Court in the case of S. Velu Palandar Vs DCIT , (1972) 83 ITR 683 (Mad). 4. On the other hand, ld. DR has placed strong reliance on the order under appeal. 5. We have heard the parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust for the benefit of exemption u/s 80G(5) of the Act by holding that the activities of the trust are not genuine. 8. In N.N. Desai Charitable Trust vs. CIT , 246 ITR 452 (Guj), it has held, interalia, that while considering the certification of the Institution for the purpose of Section 80G, inquiry should be confined to finding out if the Institution satisfies the prescribed conditions as mentioned in Section 80G; that it is well settled that at the time of granting the application u/s 80G, what is to be examined is whether the trust is registered u/s 12A and the objects of the trust; that so far as the aspect of income is concerned, the same can be very well examined by the Assessing Officer at the time of framing assessment; and that the Authority examining the question whether a trust/Institution is eligible to be certified for the purposes of Section 80G is not to act as an AO. 9. N.N. Desai , (Supra) was followed by the Pune ITAT in B.P.H.E. Society vs. ITO , in ITA No. 111/PN/2010, vide order dated 30.08.2011, holding that when the CIT is to examine an application seeking recognition u/s 80G, he is not required to act as an AO and decide upon the claim of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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