INCOME TAX ACT, 1961

Section 80G

Deduction under section 80G - Rejection of assessee's application for approval under section 80G(5) - Assessee failed to furnish relevant details and took plea of registration under section 12AA -

Assessee filed application for registration under section 80G(5) with CIT(E) who however, declined to grant appproval. Owing to non-production of original bills and vouchers for verification of activities and for verification of expenses having being incurred for objective of the assessee society, non-production of details of donation as well confirmation in the cases where cash donations exceeded Rs. 2000 as well non-production of details of charitable activities carried on by assessee. Assessee submitted that once registration under section 12AA was granted by Revenue in favour of assessee, then registration under section 80G was automatic and Revenue has no right to seek for any further details and revenue was bound to grant registration under section 80G. Held: Assessee had not furnished details as were required by CIT(E) in exercise of its powers under section 80G(5). Inquiry as contemplated under section 80G(5) read with rule 11AA as to genuineness of activities of assessee institution was not an empty formality, more-so there was a time gap between grant of registration under section 12AA in May 2019 and an application filed by assessee on 10-3-2020 with CIT(E) for grant of approval under section 80G. Issue was to set aside to CIT(E) for consideration afresh. Assessee was directed to appear before CIT(E) and furnish all the relevant details evidences in support of its application for approval under section 80G.

Relied:CIT (Exemptions) Lucknow U.P. v. Reham Foundation ITA No. 37 of 2017, dated 26-9-2019 : 2019 TaxPub(DT) 6767 (All-HC).

REFERRED :

FAVOUR : Matter remanded.

A.Y. :

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