AI Drafter 
TaxTMI 
TaxTMI 
2018 (5) TMI 625
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....ed approval u/s 10(23C(vi) of the Act vide order dated 21.8.2007. 3. During the course of hearing before the Ld.CIT(E) in the present proceedings, due opportunity of hearing was granted to the assessee, calling for information by issuing show cause letter to it. Due reply was filed by the assessee in response to the said letter, after considering which the Ld.CIT(E) rejected the application holding that the assessee had at its disposal investible surpluses and the rationale for seeking donations was not brought out in the present case and further that the activities and claim of the assessee society of imparting education was not corroborated by its emphasis on assets creation and other investments till date. The relevant findings of the Ld.CIT(E) at paras 4 to 7 of its order are as under: "4. The applicant society has submitted its financial statements for last four years. The Gross receipt, Net surplus, FDRs as per balance sheet and additions made under the head "building" are as under:- F.Y. Gross Receipt Net Surplus (%) FDR Addition Building 2012-13 Rs.30,09,27,726/- Rs 9,12,69,146/- 30.3%) Rs.2,99,77,427/- Rs. 4,16,88,261/- 20....
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....ude this section in the Act is to promote and encourage people for making donations to the societies/ trust which otherwise lacks funds for performing charitable activities. On the contrary, the applicant trust has accumulated large funds in the form of FDR and Cash that they are not willing to utilize for expansion. There is no previous history of donations in the applicant's case either. The applicant hasn't shown any history of donations till now. The actions by applicant so far clearly lead to the conclusion that the applicant has sufficient funds which are required to propagate its object and also to finance future expansion which remains unelaborated. No specific reason for applying under this section has been given by the applicant. 6. Further the applicant has not elaborated on (a) the target group from whom the donation would be sought/received, (b) the exact contours of the expansion in education they wish to undertake and the quantum of finances that would be necessary, (c) how the expansion would prove beneficial to the general public at large, and (d) the list of people who have shown the inclination to donate to the society. The Apex Court in the most recen....
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....by assuming that the appellant is commercialising the education sector whereas his office has granting registration u/s 12AA of the Income Tax Act, 1961 vide order dated 19.05.2014. The said registration is valid till date. Hence the assumption of the learned CIT(Exemption) is wrong and the appellant deserves to be granted approval u/s 80G of the Act. 5. That the learned CIT (Exemption) Chandigarh has wrongly denied the registration u/s 80G of the Act by involving himself into the administrative matter of the appellant inspite of the fact that the learned CIT(Exemption) is not the member of the appellant society but an authority under Income tax to decide the application under Form 10G on merit." 5. During the course of hearing before us the Ld. counsel for assessee pointed out the fact that the assessee society is registered as a charitable society by the Revenue itself u/s 12AA of the Act and has also been approved by the Revenue for claiming exemption u/s 10(23C)(vi) of the Act as an institution/university existing solely for the purpose of imparting education. The Ld. counsel for assessee, therefore, contended that its charitable character by way of imparting education ha....
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.... contain any provision for the transfer of application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; (iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; (iv) the institution or fund maintains regular accounts of its receipts and expenditure; (v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860 ), or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956 (1 of 1956 ), or is a university established by law, or is any other educational institution recognised by the Government or by a university established by law, or affiliated to any university established by law, or is an institution financed wholly or in part by the Government or a local authority; (vi) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being approved by the Commissioner in accordance with the rules made in this behalf." Rule 11AA . (1) ....
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....t considerations for the purpose of grant of approval u/s 80G(5)(vi) of the Act as is evident from the section and Rule itself, the only requirement as per which, for being eligible for approval, was that it should be engaged in charitable activities which are not for the benefit of particular community. The Ld. counsel for assessee, therefore, pleaded that the order of the Ld.CIT(E) be set aside. 7. The Ld. DR, on the other hand, relied upon the order of the Ld.CIT(E) pointedly referring to the data reproduced therein showing availability of sufficient funds invested in fixed assets and current assets which showed that the assessee had sufficient funds at its disposal and did not require funding by way of donation at all. Moreover, the Ld. DR stated that the assessee had also not shown reason for seeking donations. Relying heavily upon the order of the Ld.CIT(E) the Ld. DR stated that the assessee's application for grant of approval had been rightly rejected by the Ld.CIT(E). 8. We have carefully considered the contentions raised by both the parties, gone through the order of the Ld.CIT(E) and also the documents placed before us. The issue before us relates to grant of appro....