CHETNA SEVA SANSTHA LATUR,JAMKHED vs. INCOME TAX OFFICER, EXEMPTION WARD, AURANGABAD

Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 05.08.2025 for registration of the trust under clause (iii) of section 12A(1)(ac) of the Act. With a view to verify the genuineness of the activities of

Since he rejected the grant of registration u/s 12A of the Act and cancelled the provisional registration granted earlier, he refused to grant approval u/s 80G of the Act.

Aggrieved with such order of CIT(Exemption), the assessee is in appeal before the Tribunal by raising the following grounds:

The Ld. Counsel for the assessee submitted that it fulfills all the conditions prescribed under the Act for grant of registration u/s 12AB and the approval u/s 80G of the Act. He submitted that all the details were filed before the Ld. CIT(E). However, he has not gone through the same properly. He submitted that in the interest of justice, the assessee should be given an opportunity to substantiate its case by filing the requisite details before the Ld. CIT(E).

The Ld. DR on the other hand heavily relied on the order of the Ld. CIT(E).

We have heard the rival arguments made by both the sides, perused the orders of the Ld. CIT(E) and the paper book filed on behalf of the assessee. It is an admitted fact that due to non-submission of the copy of the order of valid provisional approval u/s 12AB of the Act by the assessee, the Ld. CIT(E) held that the pre-requisites of the provisions of clause (iii) of section 12A(1)(ac) of the Act are not fulfilled. Further, he also given a finding that in spite of giving sufficient opportunities, the assessee could not satisfy the Ld. CIT(E) regarding the genuineness of its activities and compliance of requirements of any other law for the time being in force. Since it is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E) to his satisfaction, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(Exemption) with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details to his satisfaction and decide the issue as per fact and law. The assessee is also hereby directed to submit the details as called for by the Ld. CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(Exemption) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

Grounds raised by the assessee are as under:

After hearing both the sides, we find the Ld. CIT(E) rejected the application for grant of approval u/s 80G by observing as under:

Since we have already restored the issue of grant of registration u/s 12AB to the file of the Ld. CIT(E) for fresh adjudication, therefore, we restore the issue of grant of approval u/s 80G also to his file for fresh adjudication with similar directions. The grounds raised by the assessee are accordingly allowed for statistical purposes.

In the result, both the appeals filed by the assessee are allowed for statistical purposes.