Appeal Allowed: ITAT Grants 80G Registration to Gaushala Society

The ITAT overturned the Commissioner's rejection of an application under section 80G(5)(vi) of the Income Tax Act due to alleged receipt of anonymous donations by a society housing cows in a Gaushala. The ITAT emphasized that rejection under section 80G(5) should only occur if specific conditions are not met and that taxability of anonymous donations under section 115BBC should be addressed separately. The ITAT directed the Commissioner to grant registration under section 80G to the society, allowing the appeal.

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Issues:
Application rejection under section 80G(5)(vi) of the Income Tax Act, 1961 based on anonymous donations.

Analysis:
The appeal challenged the rejection of the application under section 80G(5)(vi) of the Income Tax Act by the Commissioner of Income Tax (Exemption). The rejection was primarily due to the society's alleged receipt of anonymous donations and lack of income from the sale of milk despite housing a large number of cows in a Gaushala. The Commissioner cited section 115BBC as anonymous donations were deemed taxable under it. The society contended that being registered under section 12A should suffice for approval under section 80G. The ITAT analyzed the relevant provisions and rules, emphasizing that rejection under section 80G(5) should only occur if conditions from clauses (i) to (v) are not met. Notably, there was no clause mandating rejection for accepting anonymous donations under section 80G. The ITAT referenced a Lucknow Bench ITAT judgment supporting this stance, highlighting that anonymous donations' taxability under section 115BBC should be addressed during assessment and not impact section 80G approval. Consequently, the ITAT directed the Commissioner to grant registration under section 80G to the society, allowing the appeal.

This detailed analysis underscores the critical legal interpretation and application of provisions related to the rejection of an application under section 80G(5)(vi) of the Income Tax Act based on anonymous donations, culminating in the ITAT's decision to overturn the Commissioner's order and grant registration to the society.

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