TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 954
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.... meaning of section 2(15) of the Income tax Act, 1961 when on the same set of facts and material furnished the learned CIT(E) had granted registration under section 12AB of the Income tax Act, 1961. 3. The learned Commissioner of Income Tax (Exemptions) having satisfied with the genuineness of the trust and also having satisfied with the activities of the trust to grant registration under section 12AB of the Income tax Act, 1961 ought to have granted the approval under section 80G(5)(iii) of the Income tax Act, 1961 to enable the appellant trust to get donations for carrying out its objects. 4. The learned Commissioner of Income Tax (Exemptions) has failed to comprehend the fact that, appellant has not only having fees receipts it also has other than fees receipts, which are eligible for deduction under section 80G of the Income tax Act, 1961. 5. The learned Commissioner of Income Tax (Exemptions) has failed to comprehend the fact that, "fees receipts" is the revenue generated out of the regular activities carried by the Institution/Trust, which does not comes under the definition of Donation Received under section 80G of the Income tax Act, 1961. 6. The learned Commissione....
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.... (i) The assessee trust reported surplus every year which is not utilized towards charitable purposes and they had been accumulated in FDs and received interest income. (ii) The private institution which is well funded by high fee receipts and management fee, which undergoes an increase every year does not commensurately passed on in terms of tangible or intangible facilities. (iii) It is the government aided school / colleges / institution and other institutions operating in remote areas with little or no infrastructure deserve the benefit of 80G. (iv) The fee receipts which are forming part of the total receipts do not fall under the purview of donation u/s. 80G of the Act. 3.2 In view of the above, the application filed by the assessee trust in form 10AB dated 08.08.2024 for approval u/s. 80G of the Act was rejected and accordingly, the approval was cancelled by the ld. CIT(E) vide Order in Form 10AD dated 17.02.2025. 4. Aggrieved by the order of ld. CIT(Exemptions), Bangalore dated 17.02.2025, the assessee has filed the present appeal before this Tribunal. 5. Before us, the ld. A.R. of the assessee vehemently submitted that the ld. CIT(Exemptions) erred in rejecting ....
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.... on going through the annexure to Form No.10AD dated 17.02.2025, we observed that the first contention for rejection by the ld. CIT(E) is that the assessee trust had reported surplus every year which was not utilized towards charitable purposes and they had been accumulated in FDs and received interest income. However, on the other hand the ld. AR of the assessee submitted that the ld. CIT(E) has grossly erred in ignoring the capital expenditure applied during the year as application of income u/s. 11(1) of the Act as well as accumulation of 15% of income from such property which shall not be included in the total income. On going through the Income & Expenditure A/c for last 3 years reproduced by the ld. CIT(E) we take a note of the fact that the assessee trust had applied substantial amount towards educational activities. We are of the considered opinion that the scope of enquiry by the ld. CIT(E) while dealing with the application for grant of approval u/s. 80G of the Act extends only to the satisfaction of the genuineness of the activities of such trust/institutions and the fulfillment of all the conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act and not th....
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....vant section is sub-sections (5). The ld. Commissioner (Exemptions) after receiving the application for granting approval u/s 80G of the Act shall call for such document or information and make such enquiry as he/she thinks necessary in order to satisfy himself/herself about the genuineness of the activity of such institution or fund and the fulfillment of all the conditions laid down in clause (i) to (v) as follows: (5) This section applies to donations to any institution or fund referred to in subclause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfills the following conditions, namely:- (i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 [* * *] [ Certain words omitted by Act 21 of 1998, Section 29 (w.e.f. 1.4.1999).] [* * *] [ Certain words omitted by Act 20 of 2002, Section 30 (w.e.f. 1.4.2003).] [or clause (23-AA) or clause (23-C)] [ Substituted by Act 11 of 1987, Section 35, for " or clause (23-C)" (w.e.f. 1.4.1988).] of section 10: [Provided that where an institution or fund derives any incom....