TMI Blog2024 (12) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... ary is, its application under Section 80G (5) of the IT Act also deserves to be allowed which the ITAT has rightly noticed to be the correct legal position and directed the CIT(E) to grant approval to the assessee under Section 80G (5). As such, the substantial question of law is answered in favour of the assessee. - HON'BLE SHRI SANJAY K. AGRAWAL AND HON'BLE SHRI RADHAKISHAN AGRAWAL, JJ. For the Appellant : Mr. Vijay Chawla, Advocate on behalf of Mr. Amit Chaudhari, Standing Counsel for the Income Tax Department. For the Respondent : Ms. Smiti Sharma, Advocate. JUDGMENT ON BOARD SANJAY K. AGRAWAL, J. 1. This tax appeal under Section 260A of the Income-tax Act, 1961 (for short, the IT Act ) has been preferred by the Revenue callin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for approval under Section 80G of the IT Act on the ground that the assessee Society runs a college in the name of Dignity College of Architecture, the Society is also generating surplus out of fees charged from students to provide education and the Society is not involved in any other activities as mentioned in the application of Form 10G. Ultimately, on 26-12-2018, the Commissioner of Income-tax (Exemption) passed an order on the application under Section 80G (5) (vi) of the IT Act and rejected the application under Section 80G of the IT Act which the respondent herein / assessee challenged before the ITAT. By the impugned order, the learned ITAT reversed the order passed by the CIT(E) and granted application under Section 80G of the IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res integra and stands decided by a decision of the Gujarat High Court in the matter of Hiralal Bhagwati v. Commissioner of Income-Tax (2000) 246 ITR 188 and that has been approved to be the correct law by a decision of the Supreme Court in the matter of Assistant Commissioner of Income Tax v. Surat City Gymkhana (2008) 14 SCC 169. 10. In Hiralal Bhagwati (supra), application of the assessee therein for exemption under Section 80G of the IT Act was rejected and the competent authority refused to grant exemption which the assessee challenged before the Gujarat High Court and the Gujarat High Court, considering the case of the assessee therein, held that once the registration under Section 12A (a) of the IT Act is granted, the grant of benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the parties to the lis, whether it is for charitable purposes or otherwise, and the two stated questions have been answered in paragraphs 4 and 5 of the report as under: - 4. This Court, on 22-7-2002, granted leave in respect of Question B only. The appeals were not entertained in respect of Question A and it was noted that the appeals were rightly dismissed by the High Court insofar as Question A is concerned as the appellant did not challenge the correctness of the judgment in Hiralal Bhagwati. 5. On a perusal of the judgment of the Gujarat High Court in Hiralal Bhagwati we now find that Question B is also concluded by the said judgment (refer to the 1st paragraph of ITR p. 196). Since the Revenue did not challenge the decision in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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