KRAFTO CHARITABLE FOUNDATION,SILVASSA vs. CIT (EXEMPTION), AHMEDABAD, AHMEDABAD

Ld. AR for assessee at first carried us to the impugned order; the same is scanned and re-produced for an immediate reference:

By referring to above order, Ld. AR demonstrated that the Ld. CIT(E) has rejected assessee’s application for grant of approval u/s 80G(5) on the footing that the assessee does not possess a valid registration u/s 12A/12AB, which is a pre-requisite for grant of approval u/s 80G.

Ld. AR thereafter submitted that the assessee has already filed a new application to the Ld. CIT(E) accompanied by an application seeking condonation of delay in filing the same and the new application so filed is presently pending before Ld. CIT(E). It is submitted that since the issue relating to grant of approval u/s 80G(5) is consequential to the grant of registration u/s 12A/12AB, the present matter deserves to be restored at the level of Ld. CIT(E) for a fresh adjudication after taking into consideration the outcome of the pending application for registration u/s 12A/12AB and after giving fresh opportunity of hearing to assessee.

Ld. DR for revenue though dutifully supported the impugned order passed by Ld. CIT(E) yet could not controvert the factual submission made by Ld. AR and the limited prayer seeking restoration of the matter.

We have heard the rival submissions and carefully perused the material available on record including the impugned order. Upon due consideration of the facts and circumstances of the case, we find merit in the limited prayer advanced by the Ld. AR. It is an admitted position that the assessee's fresh application seeking registration u/s 12A/12AB of the Act is presently pending before the Ld. CIT(E). Since the grant of approval u/s 80G is dependent upon and consequential to the grant of registration u/s 12A/12AB, we are of the considered view that the ends of justice would be adequately served by restoring the present matter to the file of the Ld. CIT(E). Accordingly, we set aside the impugned order and restore the matter to the file of the Ld. CIT(E) with a direction to adjudicate the assessee's application for approval u/s 80G afresh after taking into consideration the outcome of the pending application for registration u/s 12A/12AB and after affording the assessee an adequate opportunity of being heard. The assessee is also directed to extend full cooperation and make effective compliance during the remand proceedings. Ordered accordingly.

Resultantly, this appeal is allowed for statistical purposes.