SAINA JAN SEWA SAMITI,BAREILLY vs. COMMISSIONER OF INCOME TAX (E), LUCKNOW

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ITA 499/LKW/2019Status: DisposedITAT Lucknow19 March 20202 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT's order and restored the matter to the CIT's file. The CIT is directed to re-decide the application considering the amended by-laws and providing a hearing opportunity to the assessee.

What were the facts?

The assessee-society applied for approval under Section 80G, but the CIT(Exemption) rejected it because the Memorandum of Association lacked an irrevocability clause. The assessee subsequently amended its by-laws.

What were the issues?

Whether the rejection of an 80G approval application due to a missing irrevocability clause can be revisited after the assessee amends its by-laws.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 80G(5)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW

Before: SHRI. A. D. JAIN & SHRI B.R.R. KUMAR

For Appellant: Shri Sharad Tandon, Advocate
For Respondent: Shri S. K. Madhuk, CIT (DR)

PER A.D. JAIN, V.P.: This is assessee’s appeal against the order of ld. CIT (Exemption), Lucknow, dated 31/7/2019, passed under section 80G(5)(vi) of the Income Tax Act, 1961, rejecting the application for grant of approval under section 80G(5) of the Act. 2. The applicant-society has filed an application for approval under section 80G(5) of the Act on 23/1/2019 with the CIT (Exemptions), Lucknow, who rejected the application on the ground that the Memorandum of Association does not have irrevocability clause. 3. The ld. Counsel for the assessee has submitted before us that the assessee-society has now amended its by-laws; and that therefore, the matter may be restored to the file of the ld. CIT (Exemptions) to decide the issue of grant of approval under section 80G on considering the amended by-laws.

Page 2 of 2 3. Ld. D.R., on the other hand, has supported the order of the CIT (Exemptions).

4.

Heard. It is an undisputed fact that the CIT (Exemptions) had rejected the application of the assessee for grant of approval under section 80G of the Act for the reason that the Memorandum of Association does not have irrevocability clause. The ld. Counsel for the assessee has submitted before us that the assessee-society has now amended its by-laws and therefore, the application of the assessee society for grant of approval under section 80G(5) may be decided on considering the amended by- laws. In this view of the matter, we set aside the order of the ld. CIT (Exemptions) and restore the matter to his file with a direction to decide the matter afresh on considering the amended by-laws and on affording reasonable opportunity of hearing to the assessee. The ld. CIT (Exemptions) shall pass the order within two months from the date of receipt of this order.

5.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 19/03/2020.

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