Delhi Public School Ghaziabad Society vs. CIT (Exemption): Appeal on Section 80G Approval Dismissed

Delhi Public School Ghaziabad Society vs. CIT (Exemption): Appeal on Section 80G Approval Dismissed

The case of Delhi Public School Ghaziabad Society, Ghaziabad, against the Commissioner of Income Tax (Exemption), Ghaziabad, pertains to an appeal filed under ITA No. 6469/DEL/2019. The appeal, filed on 2nd August 2019, challenged the denial of approval under Section 80G of the Income Tax Act, 1961. The final order was pronounced on 13th July 2022 by the Income Tax Appellate Tribunal (ITAT), Delhi Bench “B”, comprising Shri Pradip Kumar Kedia, Accountant Member, and Shri Narender Kumar Choudhry, Judicial Member.

Background of the Case

Delhi Public School Ghaziabad Society (DPSG Society) is a well-known educational institution that sought approval under Section 80G of the Income Tax Act, which would allow donors to the institution to claim tax deductions on their contributions. The approval under Section 80G is crucial for non-profit organizations as it incentivizes donations by offering tax benefits to donors.

However, the Commissioner of Income Tax (Exemption), Lucknow, denied the approval under Section 80G, which led DPSG Society to file an appeal before the ITAT. The society argued that it met all the necessary conditions for approval under Section 80G and that the denial was unjustified.

Proceedings Before the ITAT

The appeal was taken up by the ITAT on 28th June 2022. During the hearing, the counsel for the appellant, Shri Sahil Sharma, submitted that the grievance regarding the denial of Section 80G approval had been resolved in favor of the appellant by the Revenue. As a result, the appellant sought to withdraw the appeal.

The Departmental Representative (DR), Ms. Yagya Saini Kakkar, representing the Revenue, raised no objection to the withdrawal of the appeal. Consequently, the Tribunal decided to dismiss the appeal as withdrawn.

Tribunal’s Decision

In light of the submissions made by both parties, the ITAT dismissed the appeal of DPSG Society as withdrawn. The Tribunal’s decision was pronounced in the open court on 13th July 2022, marking the conclusion of the case.

Significance of the Case

This case highlights the importance of Section 80G approval for educational and charitable institutions like Delhi Public School Ghaziabad Society. The withdrawal of the appeal indicates that the issue was resolved amicably between the appellant and the Revenue, allowing DPSG Society to continue its operations with the necessary tax benefits in place.

The approval under Section 80G is a significant factor for non-profit organizations as it directly impacts their ability to attract donations. The resolution of this case in favor of DPSG Society ensures that the institution can continue to benefit from donations that are eligible for tax deductions, thereby supporting its educational endeavors.

Conclusion

The case of Delhi Public School Ghaziabad Society vs. CIT (Exemption) reflects the procedural aspects of tax exemption approvals under Section 80G. The withdrawal of the appeal suggests that the appellant’s concerns were addressed satisfactorily by the Revenue, resulting in the dismissal of the case. The outcome underscores the importance of clear communication and resolution between tax authorities and non-profit organizations in matters related to tax exemptions.

The ITAT’s order, pronounced on 13th July 2022, brings closure to the case, allowing DPSG Society to continue its mission of providing quality education with the added benefit of Section 80G approval.

Order Pronounced in the Open Court on 13th July 2022

Signed by:
Accountant Member: Shri Pradip Kumar Kedia
Judicial Member: Shri Narender Kumar Choudhry

Date of Pronouncement: 13th July 2022

Delhi Public School Ghaziabad Society vs. CIT (Exemption): Appeal on Section 80G Approval Dismissed