TaxTMI 
TaxTMI 
TaxTMI 
2020 (6) TMI 265
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....t'), 2.0 The brief facts of the case are that the assessee society is running a school and a B.Ed. college at Village Deshalpur, PO Nuna Majra, Bahadurgarh, Haryana. The school is affiliated to Central Board of Secondary Education and the B.Ed. college is affiliated to National Council for Teacher Education and MD University at Rohtak, 2.1 The assessee's society was given approval u/s 12AA of the Act vide order dated 29.7.2016. Immediately after the grant of registration u/s 12AA of the Act, the assessee society made an application before the Ld. CIT (E) for grant of approval u/s 80G (5) of the Act. The stated aims and objectives of the society are to open and operate Engineering Colleges, technical institutions, study centres for profess....
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....future expansion. It was also stated by the Ld, CIT (E) that the assessee society has failed to elaborate on the target group of persons from whom the donation was to be sought and that there was no list of people who have shown the inclination to donate to the society. The Ld. CIT (E) also observed that since there were investible surpluses available with the assessee society, there was no rationale for seeking donations, With these observations, the Ld. CIT (E) rejected the assessee's application for approval u/s 80G of the Act, 2.1 Aggrieved with this order, the assessee is now before the ITAT and has challenged the rejection of the assessee's application. The following grounds have been raised by the assessee in this regard:- 1. That....
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....Act, 1961 and rules made there under, 3.0 Ld. AR submitted that the Ld. CIT (E) has made irrelevant observations and has given an entirely wrong reasoning for the rejection of assesee's application. It was submitted that while giving approval u/s 80G of the Act, there is no requirement for elaborating the target group for raising the donations and that the history of donations received also irrelevant. It was further submitted that the observation of the Ld. CIT (E) that the assessee had huge amount of FDRs was incorrect as much as the assessee had to keep the FDRs mandatorily for the purpose of affiliation by the National Council of Education Research and Training and was a part of the minimum reserve fund requirement. It was also submitt....
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....ce of education and that the rest of the objects were of general public utility and therefore the Ld. CIT (E) was right in doubting the genuineness of the activities. It was also submitted that while considering the assesee's application for grant of approval u/s 80G of the Act, the Ld. CIT (E) has the power to call for any document or clarification and, therefore, he cannot be faulted for requiring the assessee to submit a list of the proposed donors as well as the past history of donations receipts. The Ld, CIT (DR) also submitted that the assessee had himself stated on a query from Ld. CIT (E) regarding the target group for receiving the donations that the assessee society had no intention to raise donations and, therefore, if donations ....
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....ssessee society has been running educational institutions and, thus, it is an accepted fact by the department that the society is carrying on educational activities. Further, the Ld. CIT (E) has drawn adverse inference from the fact of the assesee earning interest from FDRs and from the fact of maintaining FDRs. It is an accepted practice and a well known fact that educational institutions are directed to maintain some sort of reserve funds in the form of FDRs by the bodies granting affiliation and, therefore, the assessee cannot be put to a disadvantage for following the mandatory requirement by the affiliation bodies and boards. We also note that the Ld. CIT (E) has misdirected himself by requiring the assessee society to submit a list of....