Section 80G (5 ) (iii)
amit
(Querist) 13 November 2010
This query is : Resolved
dear sir
we are a society, registered under 'society registration Act 21, 1860'. and running an educational institution in name of society. we have a provision by a our bye-laws that we work for minority. but we are not a religious minority.
we have applied for 80G exemption under Income Tax Act 1961. but CIT has refused us for granting 80G Exemption on the basis of 80G (5)(iii) that interpret that you are work only exclusive for minority.
please suggest for the above comment
thanks & regards
Sathyan A.R.
(Expert) 13 November 2010
the benefit of section (5)(iii) will be denied if the institution or fund is expressly for the benefit of particular religious community or caste. If the Commissioner of income tax on the basis of your deed of trust and the objects come to the conclusion that your trust works for expressly for a particular caste then he can refuse permission. But before refusing he has to record his reasons as to how he has arrived at this opinion. However you can appeal against this before the IT AT if you feel that the commissioners decision is not acceptable
There are many decisions to explain what amounts to express spending for a cast. Each case has to be identified and decision taken accordingly. working for a community is permissible and not for a caste. These are all express prohibition laid in consonance with article 14 and 15 of the constitution.
soumitra basu
(Expert) 16 November 2010
You should file appeal before ITAT contending that your main object is education and welfare of minority is incidental to it. You shall win your case.
