Assessee-trust was granted registration under S 12AA of the Act. Assessee filed application for grant of approval under S. 80G(5)(vi) of the ACY. CIT(E) denied the approval on ground that activities of assessee-trust were not for charitable purposes and 50 per cent of donations was from trustees themselves. Tribunal held that no action under S.12AA (3) of the Act for cancellation of registration. Tribunal also held that CIT(E) before denying approval was required to record a definite finding of fact that funds were utilised for private purposes and not for charitable purposes failure to bring any such evidence on record, denial of exemption is held to be not sustainable. High Court upheld the order of the Tribunal. (AY. 2016-17)
CIT (E) v. Seth Vinod Kumar Somani Charitable Trust. (2020) 113 taxmann.com 142 / 269 Taxman 60 (P & H) (HC) Editorial : SLP of the revenue is dismissed; CIT (E) v. Seth Vinod Kumar Somani Charitable Trust. (2020) 269 Taxman 59 (SC)
S. 80G : Donation-In absence of any evidence on record showing that funds of assessee trust were being utilised for private purposes-AO is, not justified in refusing to grant approval under S.80G(5)(vi) of the Act. [S. 12AA]