TaxTMI 
TaxTMI 
2015 (9) TMI 1563
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....f Income Tax (Exemption). 2. The assessee has raised the following grounds of appeal : "1. The Ld. CIT(E) has grossly erred in rejecting the application U/S 80G(5) merely on the basis of frivolous grounds of not showing the sale of milk, when there is no saleable milk with the Society. 2. The Ld. CIT(E) has further erred in law by observing that Section 115BBC applies to anonymous donation when the society is for religious and charitable purposes. 3. The applicant craves for permission to add, alter or delete any or all the grounds of Appeal." 3. The facts of the case are that the assessee is a society registered under section 12A of the Act. It filed an application under section 80G(5)(vi) of the Act before....
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.... ground of these facts, there appears to be no ground for any approval u/s 80G of the Act. The application filed u/s 80G (5)(vi) is thus liable to be rejected." 4. Now, the assessee has come up in appeal before us against the said order of the Commissioner of Income Tax (Exemption). The learned counsel for the assessee submitted before us that the only reason on which the learned Commissioner of Income Tax (Exemption) has rejected the application under section 80G(5)(vi) of the Act is that the assessee has received anonymous donations, which cannot be a valid reason for rejecting the application under section 80G(5)(vi) of the Act in view of the fact that the assessee is already registered under section 12A of the Act. Reliance was place....
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....nder section 80G of the Act. However, we do not find ourselves in agreement with this logic of the learned Commissioner of Income Tax. 7. The claim of registration under section 80G of the Act to any institution or funds is provided under section 80G(5)(vi) of the Act which reads as under : "Section 80G(5) This section applies to donations to any institution or fund referred to in sub- clause (iv) of clause (a) of sub- section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely:- - ----------------------------------------------------------------------------------------------------- -------------------------------------------------------------------....
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.... such rejection in writing:" 9. On perusal of the above rules, it is quite clear that while granting the approval under section 80G, the only provision as per these rules is that the rejection can only be made if one or more conditions as laid down in clauses (i) to (v) of sub-section (5) of section 80G of the Act are not fulfilled. It is quite clear that the rules have given the instances of rejection of the said application in the form of non-compliance of provision of section 80G(5) clauses (i) to (v). Now, coming back to the provision of section 80G(5) of the Act, we see on reading of clauses (i) to (v), there is no clause which says that the said approval be rejected if any institution or fund accepts anonymous donation. In the pres....
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....tion from the institution/fund for satisfying himself about the genuineness of its activities. Further, cl. (5) of r. 11AA authorizes CIT to refuse recognition or continuation thereof only when the conditions laid down in cls. (i) to (v) of sub-s. (5) of s. 80G are not fulfilled. Thus neither in the main sub-s. (5) of rules made thereunder, there is any provision to refuse recognition or continuation thereof only or the ground that the particulars of donors are not provided by institution or fund. Non-availability of particulars may empower the AO to invoke s. 115BBC r/w s. 13(7) which are effective from Ist April, 2007 while making the assessment of the society but so far as recognition under s. 80G(5)is concerned, they have no role to pla....