TaxTMI 
TaxTMI 
2025 (5) TMI 433
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....tax Act, 1961, on the ground that "School Bus Fees", "Tuition Fees" and "Exam Fees" collected by the appellant for certain financial years do not fall under the definition of donations and therefore, provisions of section 80G of the Act are not found applicable under the facts and in the circumstances of the appellant's case. 3. The learned CIT[E] failed to appreciate that the impugned order refusing recognition u/s. 80G was passed in excess of jurisdiction by advesting to facts that were alien to the consideration for grant of recognition and therefore, theimpugned order passed deserves to be vacated and the appellant be granted recognition u/s. 80G of the Act. 4. The learned CIT[E] failed to appreciate that the order refusing recognition u/s. 80G of the Act was passed contrary to the provisions of the Act especially when the appellant has been granted registration u/s. 12A of the Act and therefore, the appellant ought to be granted recognition u/s.80G under the facts and in the circumstances of the appellant's case. 5. For the above and other grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the app....
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.... dated 28/10/2024 filed along with the following annexures before the learned Commissioner of Income-tax [Exemptions], BANGALORE in response to the above letter dated 07/10/2024. 34 36 CIT[E] ANNEXURE - A :- 6[a] Copy of the Provisional recognition certificate U/s 80G of the Act in Form No. 10AC of the Act dated 31/12/2021 granted from 31/12/2021 to the assessment year 2024-25. 37 38 CIT[E] ANNEXURE - B :- 6[b] Copy of the Order for registration U/s 12A of the Act dated 24/09/2021 in Form No. 10AC of the Act. 39 41 CIT[E] ANNEXURE - C :- 6[c] Copy of the acknowledgement for having filed the return of Income along with the computation of total income, financials and audit report in Form No. 10BB of the Act for the assessment year 2024-25 42 60 CIT[E] 6[d] Copy of the acknowledgement for having filed the return of Income along with the Computation of total income, financials and audit report in Form No. 10BB of the Act for the assessment year 2023-24 61 80 CIT[E] 6[e] Copy of the ack....
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.... donations made to certain specified funds, charitable institutions, or other approved entities. To qualify for deduction under this section, the contribution must be a voluntary donation to an institution registered under Section 80G. However, school fees paid to educational institutions-even if the institution is registered under Section 80G-are treated as payment for services (i.e., for education provided) and not as a voluntary donation. Therefore, such payments do not qualify as donations and ar not eligible for deduction under Section 80G. Taxpayers seeking tax benefits for tuition fees paid for their children's education may consider Section 80C, which allows deduction for tuition fees paid to recognized schools, colleges, or universities, subject to specified conditions and limits. Misuse of Section 80G - Consequences for Educational Institutions An institution registered under Section 80G is allowed to issue donation receipts only for genuine voluntary donations. If such an institution: • Treats school fees or tuition payments as donations, and • Issues 80G receipts for them, this constitutes misuse....
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....ther approved entities whereas School fees paid to educational institutions are treated as payment of services without verifying the facts of the case. We are of the considered opinion that the ld. CIT(Exemptions) has decided the issue from the perspective of the donor who claims the deduction u/s 80G of the Act (Chapter VIA) from Gross Total Income after paying donation and not from the perspective of the institution/Trust being the donee who is seeking approval U/s 80G of the Act. Further, the Section 80G(1) of the Act talks about that in computing the total income of the assessee, there shall be deducted in accordance with and subject to the provisions of this section. Sub-section (2) of section 80G of the Act specify the sum referred to in sub-section (1). Therefore, we are of the considered opinion that while considering the application of the assessee trust for grant of approval/registration u/s 80G of the Act, the ld. CIT(Exemptions) has on a wrong standpoint had relied upon & reproduced the provisions of section 80G(1) & 80G(2) of the Act, which in our view is from the perspective of donor claiming deduction u/s 80G of the Act. However, in the present case, the assessee tru....
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....r which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or 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; ][*] [ The word " and" omitted by Act 32 of 1994, Section 24 (w.e.f. 1.4.1994).] (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, ] [Inserted by Act 11 of 1983, Section 39 (w.e.f. 1.4.1984).][* * *] [ Certain words omitted by A....