2021 (10) TMI 308

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...., probabilities facts and circumstances of the case. 2. The learned CIT is not justified in refusing to grant recognition u/s 80G of the Income-tax Act, 1961, on *the ground that the genuineness of the activities for grant of approval u/s 80G[5][vi] of the Act cannot be verified under the facts and in the circumstances of the appellant's case. 3. The learned CIT[E] ought to have appreciated that the objects of trust are charitable in nature and that the appellant had filed all the details called for by the learned CIT [Exemptions], Bangalore and therefore, the learned CIT is not justified in refusing to grant recognition u/s 80G of the Act on the unsustainable ground that the genuineness of the activities for grant of ....

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.... objectives. 4. After formation of the Trust, as aforesaid, the assessee trust had applied the Registration u/s 12AA of the I.T.Act before the Commissioner of Income-tax (Exemption) and the same was granted on 16.12.2019 vide order No.ITBA/EXM/S/ 12AA/2019-20/1022453772(1). 5. Thereafter the assessee on 06.01.2020 applied for recognition u/s 80G of the I.T.Act vide application filed in Form No.10G of the I.T.Act. The CIT(E) vide letter dated 15.10.2020 called for certain details and particulars from the assessee and in response to the same the assessee vide letter dated 18.10.2020 furnished the details and particulars called for. 6. The CIT(E) passed the impugned order u/s 80G(5)(vi) of the I.T.Act by refusing to grant recognition ....

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.... charitable activities, the genuineness of the charitable activity could not be examined) is not mandated as per the provisions of the Act. 8. The learned Departmental Representative strongly supported the order of the CIT(E). 9. We have heard rival submissions and perused the material on record. The assessee trust was granted registration u/s 12AA of the I.T.Act vide order of CIT(E) dated 16.12.2019. The Department has not doubted the charitable nature of objects of the assessee for which it is established. The grant of approval / recognition u/s 80G of the I.T.Act, acts as catalyst and results in donations which in turn results in charitable activities. In other words, in many cases for the charitable activities to begin, the money ....

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..../2018 vide order dated 20/07/18 for assessment year 2018-19; • Vimalalaya Hospital Trust vs CIT (E) in ITA No. 1435/B/2019 vide order dated 29/11/19 for assessment year 2019-20. 5.1. In our view, grant of approval/recognition under section 80 G of the Act, can act as catalyst to encourage prospective donors to look at intended activities/objects and possibly provide financial support through donations/contributions. In the facts of present case, assessee was holding valid registration under section 12 AA of the Act, as on date of impugned order, which conversely means that Ld.CIT (E) was satisfied with objects of assessee in not disputing the registration under section 12 AA. 5.2. Ld.AR placed reliance upon de....