9911796707
TMI Blog2024 (11) TMI 1426X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of the decision rendered in Hiralal Bhagwati [2000 (4) TMI 14 - GUJARAT HIGH COURT] approved by the Supreme Court in Surat City Gymkhana's case [2008 (4) TMI 16 - SUPREME COURT] we have no hesitation to hold that since the respondent assessee stands registered as charitable institution u/s 12AA the only corollary is, its application u/s 80G(5) also deserves to be allowed which the learned 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). Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... the said application and to verify the objects and activities of the assessee in response to which the assessee submitted reply and thereafter, on 4-12-2018, the Joint Commissioner of Income Tax and the Assessing Officer vide their report not recommended his case 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the IT Act was granted and is continuing in operation and that is the basis which has persuaded the learned ITAT to accept the appeal of the assessee and direct the CIT(E) to grant approval under Section 80G of the IT Act. 9. The issue involved herein is no longer 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 aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 12-A was a fait accompli to hold that assessing officer back from further probe into the objects of the trust, and it has been held by their Lordships that once application under Section 12A of the IT Act is granted, there is no need of further enquiry with regard 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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