Rejection of application of renewal of exemption under section 80 cannot be made arbitrarily

Last updated: 02 November 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The Learned Director of Income Tax - (Exemption) has passed the order of Rejection of Application of Renewal of Exemption u/s 80G (5) (vi) of the Income Tax Act, arbitrarily on erroneous facts and superfluous reasons without bringing out the relevant material facts. Authorities never provided reasonable time and opportunity of being heard, as laid down in Rule 11AA(5), before rejecting the application U/S 80G(5)(vi) The Learned Director of Income Tax - (Exemption) has raised following irrelevant objections. a. The total expenses shown on charitable activities amount to only 15.50% of donation received. The Assessee has duly complied all requirements U/S 80G(5) (i) to 80G(5) (vi) and Rule IIAA(1),(2),(3). The assessee has taken unutilized charitable receipts (i.e. 84.5%) in computation of taxable income an accumulated same for the accomplishment of various charitable activities in near future.

Citation :
Tri Netra Sewa Sanstha, B-1/21, Yamuna Vihar, New Delhi. (Appellant) Vs DIT(E), Plot No.15, 3rd Floor, Aayakar Bhawan, Laxmi Nagar, District Centre, New Delhi-110092 (Respondent)