NEW LIFE CARE FOUNDATION,BADLAPUR vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS) PUNE, PUNE

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ITA 2277/MUM/2025Status: DisposedITAT Mumbai03 July 2025Bench: the Ld. Commissioner. Thus, it would be appropriate to remand this case as well, to the file of the Ld. Commissioner for adjudication along with application for registration u/s 12A of the Act. Thus, it is ordered accordingly.3 pages

AI SummaryRemanded

Facts

The assessee applied for registration under Section 80G, which was rejected by the Commissioner of Income Tax (Exemption) on the ground that the assessee's application for registration under Section 12A(1)(AC) had been previously rejected, thus not fulfilling a condition of Section 80G(5). The assessee contended that the order rejecting the Section 12A application had already been set aside by the Tribunal in a separate proceeding.

Held

The Tribunal noted that the rejection of the Section 12A application had been set aside, rendering the basis for the 80G rejection invalid. Consequently, the Tribunal remanded the case back to the Ld. Commissioner for fresh adjudication of the Section 80G application, to be considered along with the reassessed Section 12A application.

Key Issues

Whether the rejection of an application for Section 80G registration, based on the prior rejection of a Section 12A registration application, is valid when the order rejecting the Section 12A application has been set aside by the Tribunal.

Sections Cited

80G(5)(ii), 80G(5), 12A(1)(AC), 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI

Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI OMKARESHWAR CHIDARA

For Appellant: Shri Rohan Dodhia, Ld. C.A

For Respondent: Shri Satyaprakash R. Singh, Ld. D.R

Hearing: 03.07.2025Pronounced: 03.07.2025

Per : Narender Kumar Choudhry, Judicial Member:

This appeal has been preferred by the Assessee against the order dated 07.03.2025, impugned herein, passed by the Ld. Commissioner of Income Tax (Exemption) (in short Ld. Commissioner) u/s 80G(5)(ii) of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2024-25.

In the instant case, the Assessee by filing an application in form no.10AB on 30.09.2024 had sought for registration u/s 80G of the Act, which has been rejected by the Ld. Commissioner on the reason that “application filed by the Assessee for registration u/s 12A(1)(AC) of the Act has been rejected by the Ld. Commissioner vide order dated 20.01.2025 therefore condition (1) of section 80G(5) of the Act is not fulfilled.”

The Ld. Counsel for the Assessee has submitted that application filed u/s 12A of the Act and rejected by the Ld. Commissioner has already been set aside by the Tribunal in vide order dated 27.05.2025. Therefore, this case may be remanded to the file of the Ld. Commissioner for decision afresh along with the remanded case of the Assessee u/s 12A of the Act.

The Ld. D.R. did not refute the aforesaid claim.

Considering the peculiar facts and circumstances of the case that as on today the application for registration u/s 12A of the Act is already prejudice and/or pending for adjudication before the Ld. Commissioner. Thus, it would be appropriate to remand this case as well, to the file of the Ld. Commissioner for adjudication along with application for registration u/s 12A of the Act. Thus, it is ordered accordingly.