INCOME TAX ACT, 1961

Section 80G

Deduction under section 80G - Renewal of approval - CIT did not specify the grounds on which recognition under section 80G was being refused -

Assessee-trust applied for registration under section 80G. CIT rejected the application of the assessee on the ground that it had not made out a case for seeking such recognition and he was unable to satisfy himself with the genuineness of the objects and activities of the trust. It was submitted on behalf of the assessee that the CIT had not brought any material on record to show as to, which of the conditions of the provisions of section 80G had been transgressed by the assessee. It was further submitted that the only observation in the order of the CIT was that the trust was generating surplus and majority of receipts were by way of fees collection and recognition under section 80G could not be denied on the said ground. Held: It was found that the order passed by the CIT was a non-speaking order as he did not specify the grounds on which recognition under section 80G was being refused. Further, generation of surplus and the fact that majority of receipts were by way of fees collection could not be a ground to refuse recognition under section 80G. Furthermore, the assessee was established for charitable purpose of providing education. Therefore, the issue of grant of recognition under section 80G to the assessee was remanded to the CIT for fresh consideration.

REFERRED :

FAVOUR : Matter remanded.

A.Y. :

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