INCOME TAX ACT, 1961

Section 80G

Deduction under section 80G - Charitable trust - Assessee running an educational institution - Charitable purpose

Assessee-trust was duly registered under section 12AA. It applied for grant of recognition under section 80G. Accordingly, CIT called for details from the assessee regarding its objects and the same were submitted by the assessee. CIT was of the opinion that it was not possible to verify genuineness of the objects and activities of the trust since there were no sufficient activities carried on by the assessee. Hence, he denied grant of recognition under section 80G to the assessee. Held: It was undisputed that the trust was registered under section 12AA as charitable institution. Further, the original objects of the trust based on which approval under section 12AA was granted, had been continuing. Further, the assessee was providing education to poor students and also other students and it also provided details of fee collection and expenditure spent. Thus, it could be said that the assessee was carrying on its objects. Further, principle of consistency was also in favour of the assessee as based on the factual position. Therefore, there was no merit in the finding of the CIT that there were no sufficient activities carried on by the assessee. In instant case, the assessee filed details wherein it was clearly demonstrated that the assessee had been running an educational institution and it was not dormant and being so, the CIT was directed to grant recognition under section 80G to the assessee.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

SUBSCRIBE FOR FULL CONTENT