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TMI Blog2024 (11) TMI 1425X X X X Extracts X X X X X X X X Extracts X X X X ..... al of the assessee and direct the CIT(E) to grant approval u/s 80G of the IT Act. The issue involved herein is no longer res integra and stands decided in the matter of Hiralal Bhagwati [2000 (4) TMI 14 - GUJARAT HIGH COURT] and that has been approved to be the correct law by a decision of Surat City Gymkhana [2008 (4) TMI 16 - SUPREME COURT] In Hiralal Bhagwati [2000 (4) TMI 14 - GUJARAT HIGH COURT] 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 u/s 12A(a) of the IT Act is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 12AA of the IT Act by the CIT(E), therefore, the assessee is eligible for grant of approval under Section 80G(5) of the IT Act and directed the CIT (E) to grant exemption/approval to the assessee Society for grant of approval under Section 80G(5) of the IT Act. 3. Mr. Amit Chaudhari, learned Standing Counsel for the Income Tax Department appearing for the appellant herein / Revenue, would submit that the learned ITAT is absolutely unjustified in holding that the assessee Society is entitled for grant of exemption/approval under Section 80G(5) of the IT Act in view of the grant of its registration under Section 12AA of the IT Act. 4. It is not in dispute that the assessee's application under Section 12AA of the IT Act was granted and is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be granted, but where the application for registration is submitted and the registration has been granted, the benefit cannot be denied on the ground that the scheme is not for the benefit of the public at large." 7. The principle of law laid down by the Gujarat High Court in Hiralal Bhagwati (supra) was considered by the Supreme Court in Surat City Gymkhana's case (supra) in which two questions of law were framed, (A) whether the objects of the trust restricting benefit to the members of the club would fall within the purview of the act of 'general public utility' under Section 2(15) of the Income Tax Act constituting as a section of public and not a body of individuals and (B) whether registration under Section 12-A was a fait accompli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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