VittSphere ONE Calculators Blog CA Prabhakar Kumar · FCA · ICAI 560762
Calculators Blog Handle my notice
Case law › Circulars › 1985 › Circular No. 416
CBDT circular 11 April 1985

Circular No. 416

524. Fund/institution recognised under section 10(23C)(iv)/(v) - Whether recognition under section 80G is automatic

What this is

Circular No. 416 was issued by the Central Board of Direct Taxes on 11 April 1985. Its subject is 524. Fund/institution recognised under section 10(23C)(iv)/(v) - Whether recognition under section 80G is automatic.

What it does

Answers no to the question whether notification under section 10(23C)(iv) or (v) carries approval under section 80G with it. The Board says approval for section 80G is available only when the fund or institution satisfies all five conditions in section 80G(5), and a body notified under section 10(23C)(iv) or (v) may well fail some of them. It points to Explanation 3 to section 80G, under which 'charitable purpose' for that section leaves out a purpose the whole or substantially the whole of which is religious, while an institution of exactly that character may be notified under section 10(23C)(v).

Why it was issued

The Board had to consider whether recognition under section 80G follows automatically from a notification by the Central Government under section 10(23C)(iv) or (v).

Who it reaches

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.
Under the 1961 ActNow
s.10s.11, s.19
s.80Gs.133, s.332, s.354

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

524. Fund/institution recognised under section 10(23C)(iv)/(v) - Whether recognition under section 80G is automatic
The Board had occasion to consider whether the recognition under section 80G of the Income-tax Act is automatic in the case of a fund or an institution notified by the Central Government under section 10(23C)(iv)/(v). The Board is of the view that this is not so. Recognition for purposes of section 80G is available when the fund or institution satisfies all the five conditions listed under section 80G(5). There may be instances of funds or institutions notified under section 10(23C)(iv )/(v) not fulfilling some of the conditions of section 80G(5). Explanation 3 to section 80G lays down that for the purpose of the section ‘charitable purpose’ does not include any purpose the whole or substantially the whole of which is of a religious nature, whereas such institution may be notified under section 10 (23C)(v).
Circular : No. 416 [F. No. 176/11/84-IT(A-I)], dated 11-4-1985.

What to watch

Where you meet it

When a fund's application for approval under section 80G is rejected although it holds a notification under section 10(23C), or when a donor's deduction is disallowed for want of a section 80G approval.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

← Circular No. 417  ·  Circular No. 414 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.