Loading judgment…
Facts
The assessee, an old charitable trust already registered under Section 12A and recognized under Section 80G, applied for re-registration under Section 12A(1)(ac)(vi). The CIT (Exemptions) denied the registrations for Section 12A and Section 80G, citing that the assessee had applied under the incorrect section of the Income Tax Act, despite acknowledging its charitable activities.
Held
The Tribunal noted that the CIT (Exemptions) itself recognized the assessee as an old charitable organization. In the interest of justice, the Tribunal restored the matter to the file of the CIT (Exemptions), directing it to provide the assessee an opportunity to rectify its application by citing the correct section and to specify any other defects for rectification.
Key Issues
Can registration under Section 12A and recognition under Section 80G be denied merely due to an application being filed under an incorrect sub-section, when the applicant is an existing charitable entity and the authorities acknowledge its charitable work?
Sections Cited
12A, 80G, 12A(1)(ac)(vi), 12A(1)(ac)(i)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH, KOLKATA
Before: SHRI GEORGE MATHAN, JM & SHRI RAJESH KUMAR, AM
O R D E R PER BENCH:
These are the two appeals filed by the assessee, in as against the order of ld. Commissioner of Income Tax (Exemption), Kolkata [In short ld. CIT (E)] No. ITBA/EXM/F/EXM45/2024-25/1071429424(1) vide order dated 21.12.2024, denying the assessee to examine the registration u/s 12A of the Act and is the appeal filed by the assessee against the order of ld. CIT (E), Kolkata No. ITBA/EXM/F/EXM45/2024- 25/1071429424(1) vide order dated 21.12.2024, denying the assessee in granting registration u/s 80G of the Act.
It was submitted by the ld. AR that the assessee has admittedly made an application u/s 12A(1)(ac)(vi) of the Act. It was submitted that as the assessee is an old assessee and is already enjoying the benefit of registration u/s 12A and recognition of 80G of the Act. The assessee
The ld. CIT DR submitted that the wrong section has been applied by the assessee and hence, the order of the ld. CIT(E) is to be upheld.
We have considered the rival submissions. On perusal of the facts in the present case along with the order of ld. CIT (E) clearly shows that the ld. CIT (E) does recognize that the assessee is an old assessee and is doing charitable activity. This being so in the interest of justice, the issue in the appeals are restored to the file of the ld. CIT (E) so as to provide assessee an opportunity to rectify his application referring to the correct section. If the ld. CIT (E) finds any other defects in respect of similar matters in the assessee’s case, then he may in the notice clearly specify the defect / defects so as to grant the assessee adequate opportunity to rectify the defects if any.
In the result, the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open court on 21.04.2025.