2022 (6) TMI 515

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....ct, 1961 [ here in after referred to as "Act" ] . 2. The only issue assailed by the assessee in this appeal is on account of an order passed by ld. CIT(E) denying approval of u/s 80G of the Income Tax Act. The relevant fact as culled out from the order of ld. CIT(E) is as under:- The assessee filed an application for exemption 80G of the Act in form No. 10G on 28.06.2018. In order to verify the object and activities of the applicant and to ascertain the fulfilment of conditions mentioned u/s 80G, the applicant was given an opportunity of being heard by issue a notice dated 31.10.2018 fixing the hearing on 06.12.2018. In response, the assessee filed written submission and after going through the written submission the following deficie....

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....eport dated 30.11.2018, when he asked about the Audited accounts for the Financial Year 2017-18, Shri Pramod Lunawat, the Director of the college expressed his inability to produce and stated that the Audited report has not been prepared. In view of the above findings the JCIT and AO they have not recommended the case to grant approval u/s 80G of the Act. 5. The ld. CIT(E) has observed that details produced by the society reveals that society is charging sufficient fees from the students and also generating sufficient cash surplus as observed from the audited accounts for the Financial Years 2014-15, 2015-16 & 2016-17. In the terms of the above observations, the ld. CIT(E) has not granted approval to the society u/s 80G of the Act. 6.....

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....ration under section 80(G) of the Act. The reasons based on which the recognition denied are not in accordance with the law. The ld. AR also produced before us the assessment order for Assessment Year 2016-17 wherein the ld. AO has granted benefit of registration u/s 12AA and there is no such adverse finding in the assessment order. 10. The ld. AR of the assessee submitted a copy of the decision of the Hon'ble Punjab and Haryana High Court in the case of CIT Vs. Rajmala Education Society [ 65 DTR 307 ] held that merely because there are some surplus with the respondent, this should not be a ground to deny the registration under section 80G(5)(vi) of the Act. 11. The ld. AR appeared on behalf of the assessee trust also placed before us....

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....st, and the registration granted has not been revoked or cancelled then it is not proper for Commissioner of Income Tax to reject application of Trust for benefit of exemption u/s. 80G by holding that the activities of the Trust were not genuine. 7. Before us, the Revenue has not pointed out any contrary binding decision nor has placed any material on record to demonstrate that the aforesaid decision of Agra Bench of Tribunal has been set aside by the higher judicial forum. We are therefore, following the decision of Agra Bench of Tribunal and for similar reasons hold that in the present case the Commissioner of Income Tax was not justified in rejecting the application of assessee. We therefore set aside the order of LD. CIT and di....