CHILDREN OF DECCAN FOUNDATION,HYDERABAD vs. COMMISSIONER OF INCOME TAX (EXEMPTION), HYDERABAD

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ITA 1767/HYD/2019Status: DisposedITAT Hyderabad23 April 20213 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the non-registration of a lease deed does not mandatorily disallow the impugned relief. Therefore, the matter was restored to the CIT(Exemptions) for fresh adjudication.

What were the facts?

The assessee, M/s. Children of Deccan Foundation, appealed against the rejection of its Section 12AA and 80G registrations by the CIT(Exemptions). The CIT(Exemptions) had rejected the application primarily because the lease for the orphanage hostel building was unregistered.

What were the issues?

Whether the unregistered lease deed for the orphanage hostel building is a valid ground for rejecting registration under Section 12AA and 80G. Whether the CIT(Exemptions) properly considered the assessee's object clauses under Section 2(15).

Which sections of the Income-tax Act were involved?

Section 12AA,Section 80G(5)(vi),Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD ‘ B ‘ BENCH, HYDERABAD.

Before: SHRI S.S. GODARA & SHRI LAXMI PRASAD SAHU

O R D E R Per Shri S.S. Godara, J.M. : This assessee’s appeals arises from the order of Commissioner of Income Tax (Exemptions), Hyderabad both dt.27.09.2019 passed in F.No. CIT(E)/ Hyd/ 11(03)/12A & 80G/2018-19 in proceedings under 12AA and Section 80G(5)(vi) of Income Tax Act, 1961 (‘the Act’); respectively. proceeded exparte.

3.

Coming to the assessee's sole substantive grievance that the CIT(Exemptions) has erred in law and on facts in rejecting its section 12AA and 80G registration(s), we notice that with able assistance coming from learned CIT, DR that he has declined the impugned former relief mainly on the ground that the corresponding orphanage hostel building’s lease is an unregistered one. He has not dealt with the assessee's object clauses as to under which limb they fall u/s. 2(15) of the Act in other words. And further there is no dispute that such a non- registration of lease deed does not disallow disallows the impugned relief as a mandatory consequence. We deem it appropriate in this factual backdrop to restore the assessee's instant grievance back to the CIT(Exemptions) for afresh adjudication within three effective opportunities of hearing. Ordered accordingly.

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