HIRAGAURI AND DR. CHATURDAS DADIA CHARITABLE TRUST,MUMBAI vs. ITO EXEM WARD1(3), MUMBAI

Both the grounds raised by the assessee relates to challenging the order of the Ld. CIT(E) rejecting the application for renewal of registration under section 12AB of the Act.

We have considered the rival submissions and perused the material available on record. The application for renewal of registration was rejected by the Ld. CIT(E) primarily on the ground that the assessee had failed to furnish a copy of the registration granted under section 12A/12AA/section 10(23C) under the old regime (i.e., prior to 01.04.2021). According to the Ld. CIT(E), in the absence of such registration, the validity of the registration granted under section 12AB vide Form No. 10AC dated 28.05.2021 could not be established and, consequently, the assessee was held to be ineligible for renewal of registration.

On the other hand, Ld. AR drew our attention to page 6 of the paper book, wherein a copy of the registration certificate dated 12.11.1992 granted

Having regard to the above factual position, we are of the considered view that, if the assessee had indeed furnished the registration certificate granted under the old regime, the same ought to have been examined by the Ld. CIT(E) before arriving at the conclusion that no such registration existed.

In view of the facts and circumstances of the present case, we deem it appropriate to restore the matter to the file of the Ld. CIT(E) with a direction to verify the registration certificate dated 12.11.1992 and such other material as may be furnished by the assessee in support of its claim. Thereafter, the Ld. CIT(E) shall adjudicate the application for renewal of registration under section 12AB of the Act afresh, in accordance with law, after affording the assessee a reasonable opportunity of being heard.

Before parting, we make it clear that our decision to restore the matter to the file of the Ld. CIT(E) shall not be construed as an expression of any opinion on the merits of the case. The Ld. CIT(E) shall decide the application independently and strictly in accordance with law, uninfluenced by any observations made herein.

Since we have already remitted the matter relating to renewal of registration under section 12AB of the Act back to the file of the Ld. CIT(E) for fresh consideration, we are of the considered opinion that the issue of approval under section 80G(5) of the Act also requires reconsideration.

Accordingly, we remit this matter as well to the file of the Ld. CIT(E) for fresh adjudication after giving due opportunity to the assessee to substantiate its claim. The assessee is also directed to comply with all the notices issued by the Ld. CIT(E) and furnish all relevant details for fresh consideration.

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