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Facts
The assessee, a registered society, had its application for exemption under Section 80G denied by the PCIT on the grounds of it being not maintainable. The PCIT's decision was based on the assessee filing an ITR-7, which the PCIT believed precluded them from filing an application under Section 80G(5)(iv)(B).
Held
The Tribunal held that the PCIT erred in dismissing the application as not maintainable. The Tribunal noted that the assessee's registration under Section 12AB was still in force, and filing of ITR-7 was irrelevant for considering the claim of exemption under Section 80G(5).
Key Issues
Whether the filing of ITR-7 by an assessee, which has a valid registration under Section 12AB, makes its application for exemption under Section 80G not maintainable.
Sections Cited
80G, 80G(5), 80G(5)(iv), 80G(5)(iv)(B), 12A(1)(ac)(vi), 12A(1)(ac)(iii), 12AB(1)(b), 10AC, 10AD
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI
Before: SHRI M. BALAGANESH & SHRI YOGESH KUMAR U.S.
PER M. BALAGANESH, A. M.: The appeals in & 6018/Del/2024 for AY 2024-25, 1. arise out of the order of the Commissioner of Income Tax (Exemptions), Chandigarh [hereinafter referred to as ‘ld. CIT(E)’, in short] dated 19.09.2024.
This appeal arises out of the order passed by the ld PCIT denying the exemption u/s 80G of the Act by stating that appeal of the assessee is not maintainable.
We have heard the rival submissions and perused the material available on record. It is not in dispute that the assessee is a registered society duly registered with Registrar of Societies, Chandigarh. The assessee was granted provisional registration in Form 10AC of the Act for AYs 2022-23 to 2024-25 vide order dated 31.12.2021 u/s 12A(1)(ac)(vi) of the Act. The assessee filed an application in Form 10AB u/s 12A(1)(ac)(iii) of the Act on 30.09.2023. Permanent registration was granted u/s 12AB(1)(b) of the Act by the ld CIT(E), Chandigarh for AYs 2022-23 to 2026-27 on 27.03.2024. The assessee filed an application seeking exemption u/s 80G(5) of the Act before the ld PCIT. On 10.03.2022 provisional approval was granted by the ld PCIT u/s 80G(5)(iii) of the Act from 10.03.2022 to AY 2024-25. On 30.03.2024, an application in Form 10AB was filed under 1st proviso to Section 80G(5)(iv) of the Act. The ld PCIT passed an order in Form 10AD on 19.09.2024 dismissing the application of the assessee as not maintainable by observing that the assessee has filed ITR-7 and hence, could not have filed application u/s 80G(5)(iv)(B) of the Act and accordingly, the application is not maintainable. It is pertinent to note that the registration granted u/s 12AB is still in force to the assessee and filing the return in ITR-7 is of no relevance as far as considering the claim of exemption u/s 80G(5) of the Act is concerned. Even the 2nd proviso to section 80G(5)(iv) of the Act enables the ld PCIT to call for certain documents and make enquiries regarding the activities of the trust. In these circumstances, we hold that the ld PCIT erred in dismissing the application of the assessee as not maintainable. Hence, we deem it fit and appropriate to restore this appeal to the file of ld PCIT to consider the application seeking exemption u/s 80G(5) of the Act afresh in accordance with law. Accordingly, grounds raised are allowed for statistical purposes.
In the result, the appeal is allowed for statistical purposes.
At the time of hearing, the ld AR submitted that he has been instructed not to press the appeal. Accordingly, the appeal is hereby dismissed as not pressed.
To sum up, the appeal of the assessee in ITA 6036/Del/2024 is allowed for statistical purposes and appeal of the assessee in is hereby dismissed as withdrawn.
Order pronounced in the open court on 09/05/2025.