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Facts
The assessee filed an application in Form 10AB for registration under Section 80G of the Income Tax Act. The CIT(Exemptions) rejected the application, stating it was incomplete and violated provisions related to receiving foreign funds. The CIT(E) had previously granted registration under Section 12AB of the Act.
Held
The Tribunal found that since the assessee had already been granted registration under Section 12AB based on its objects, and the objects remained the same, there was no reason to deny registration under Section 80G. Therefore, the Tribunal directed the CIT(E) to grant registration under Section 80G.
Key Issues
Whether the rejection of registration under Section 80G was justified when the assessee already had registration under Section 12AB for the same objects.
Sections Cited
80G, 80G(5), 11, 12AB, 11AA(2)
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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA, HON’BLE & SHRI ANIKESH BANERJEE, HON’BLE
O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assessee is preferred against the order of the ld. CIT(Exemptions), Mumbai [hereinafter ‘the CIT(E)’] rejecting the registration u/s 80G of the Act.
Briefly stated, the facts of the case are that the assessee filed application in Form 10AB under clause (iii) of first proviso to Section 80G(5) of the Act seeking approval u/s 80G of the Act. 3. The application of the assessee was rejected by the ld. CIT(E) observing as under:- “3. On verification of the application in Form 10AB filed by the applicant, it was found that the application was not complete, and all the documents required to be accompanying the application were not furnished. Hence, a notice was issued to the applicant vide DIN & Notice No. ITBAVEXM/F/EXM43/2024-25/1070315208(1) dated 13.11.2024 requesting the applicant to furnish the complete set of documents mentioned in Rule 11AA(2). In response, applicant made submission on 27.11.2024. After going through the submissions made by the applicant, it is noticed from the trust deed/MOA that point no. 3(b)(5) and 3(b)(11) of the objects are in violation of 2 provisions of section 11 of the I.T. Act as the trust intends to apply/receive funds outside India. In view of the same, showcause notice was issued to the applicant in this regard and other information was also called for vide DIN & Notice No. ITBA/EXM/F/EXM43/2024-25/1071126511(1) dated 12.12.2024. However, no response has been received in this regard. 4. Since Approval under section 80G is to be accorded to the applicant after satisfying oneself of the genuineness of activities and the compliance of all the conditions mentioned in clauses i) to (V) of section 80G(5) and any other provisions of the Income Tax Act relevant to charitable institutions. Thus, based on the reasons mentioned above, this application for approval u/s 80G is not allowable. As such the undersigned is left with no other option but to reject the application seeking approval under section 80G of the Act, as the limitation to decide on the application is 31.12.2024. 5. In conclusion, this application for grant of approval stands rejected.” 4. We find that the ld. CIT(E) vide order dated 18/03/2024 has granted registration u/s 12AB of the Act. The order of the ld. CIT(E) is placed at pages 11 to 14 of the paper book. 5. In our considered opinion, once the ld. CIT(E) is satisfied with the objects of the trust and has granted registration u/s 12AB of the Act, and the objects are the same, we do not find any reason as to why the registration u/s 80G of the Act should not be granted. 6. Considering the registration u/s 12AB of the Act, we direct the ld. CIT(E) to grant registration u/s 80G of the Act. 7. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 3rd April, 2025 at Mumbai. (ANIKESH BANERJEE) ACCOUNTANT MEMBER