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Facts
The assessee filed an application for registration under section 80G of the Income Tax Act. The CIT(E) rejected the application, mistakenly believing it was for registration under section 12AB. The assessee had already obtained registration under section 12AB on an earlier date.
Held
The Tribunal held that the CIT(E) erred in rejecting the application for section 80G registration without appreciating that the application was for 80G and that the 12AB registration was already granted. The matter was set aside to the CIT(E) for fresh adjudication.
Key Issues
Whether the CIT(E) correctly rejected the application for 80G registration when it was mistakenly treated as a 12AB application, despite existing 12AB registration?
Sections Cited
12AB, 80G, 10AB
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Income Tax Appellate Tribunal, ‘G’ BENCH
आदेश / O R D E R PER VIKRAM SINGH YADAV (A.M): This is an appeal filed by the assessee against the order of Ld. CIT(Exemption) dated 29.11.2024 wherein the assessee has taken the following revised grounds of appeal: “1. The Ld. Commissioner of Income Tax (Exemption) Mumbai. [herein referred to as 'CIT(E)'], erred in holding that application seeking registration u/s, 12AB is rejected without appreciating and in total ignorance, that the subject matter of application in Form No.10AB was approval for final registration u/s. 80G of the Income Tax Act. 1961.
1. The Golden Spiral Foundation That the registration u/s. 12AB is already granted on 14.10.2021 and the impugned order itself is arbitrary and ought to be set aside. Without prejudice to the above; 2 The Ld. CIT(E), Mumbai, erred in rejecting the application made in Form no.10AB by exceeding the jurisdiction conferred under the provisions of the Income Tax Act, 1961.
3. The Ld. CIT(E) has erred in failing to appreciate that the appellant trust has not utilized any funds outside India till date for the purpose of providing scholarships, prizes, or awards to students for their higher education and the same was evident from documentations submitted.
4. The Ld. CIT(E), Mumbai erred in not allowing the appellants sufficient opportunity and in rejecting application despite an affidavit submitted by the appellant trust that the trust has not performed any activities which will lead to infringement of provisions of any law.”
Briefly the facts of the case are that the assessee moved an application seeking approval under clause (iii) of first proviso to sub section (5) of section 80G of the Act which has been dismissed by the Ld. CIT(Exemption) and against which the assessee has come in appeal before us.
During the course of hearing, the Ld. AR submitted that the assessee has moved an application for seeking final registration u/s. 80G of the Act. However, the application has been rejected by the ld CIT(E) stating that the assessee has moved an application seeking registration u/s. 12AB of the Act and vide the impugned order, the rejection order has been passed rejecting so called application u/s 12AB of the Act. It was submitted that the registration u/s. 12AB has already been granted by the Ld. CIT(Exemption) on 14.10.2021 and a copy thereof was placed on record. It was accordingly The Golden Spiral Foundation submitted that the order so passed by the Ld. CIT(Exemption) deserve to be set aside and the assessee be allowed necessary necessary registration so sought u/s 80G of the Act.
The Ld. CIT/DR was heard who has also fairly submitted that though the assessee has moved an application seeking registration u/s. 80G of the Act, however, on persual of the impugned order, it appears that Ld. CIT(Exemption) has rejected the application holding that the application was moved u/s. 12AB of the Act. Further, he could not controvert the fact that the assessee has already been granted registration u/s. 12AB of the Act vide order passed on 14.10.2021.
As fairly submitted by both the parties and considering the material available on record, we find that the assessee, which has already been granted registration u/s 12AB vide order dated 14.10.2021, has moved the present application seeking registration u/s 80G of the Act, however, while passing the impugned order, the ld CIT(E) has rejected the same holding the application so filed seeking registration u/s 12AB and in the process, not adjudicating on the subject matter of application. We accordingly set aside the matter to the file of the Ld. CIT(Exemption), with the direction to consider the application so filed by the assessee seeking registration u/s. 80G on merits of the case and decide as per law, after duly taking into consideration the registration u/s. 12AB which The Golden Spiral Foundation has already been granted vide order passed on 14.10.2021, after providing reasonable opportunity to the assessee. In the result, ground no. 1 of the assessee’s appeal is allowed for statistical purposes.
In view of the aforesaid, where we have set-aside the matter to the file of the ld CIT(E), we don’t deem it necessary to adjudicate other grounds of appeal and the same are dismissed as infructious.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in open court on 26.03.2025.