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Facts
The assessee applied for registration under Section 80G. The CIT rejected the application stating that the assessee's application for registration under Section 12AB was already rejected, and thus the condition for 80G approval was not met.
Held
The Tribunal noted that the issue of Section 12AB registration was already remanded back to the CIT for reconsideration. Therefore, the Tribunal set aside the CIT's order rejecting the 80G application and remanded the matter back to the CIT for fresh decision.
Key Issues
Whether rejection of 80G registration application is justified when the related 12AB registration is under remand and the CIT has not decided it afresh.
Sections Cited
80G, 12AB, 12A(1)(ac)(iii), 10(23C), 10(23AA)
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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 16.12.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 80G of the IT Act.
Facts of the case, in brief, are, that the assessee filed its application for registration in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act on 21.06.2024. With a view to verify the genuineness of activities of the assessee and fulfilment of conditions laid down in clauses (i) to (v) of section 80G(5) of the IT Act, notices were issued through ITBA portal requesting the assessee to upload certain information/clarification. After considering reply of the assessee Ld. CIT(E) was of the view that application of the assessee for registration u/s 12AB of the IT Act has already been rejected and therefore in the absence of section 12AB registration, the assessee is not entitled for approval u/s 80G(5) of the IT Act and accordingly Ld. CIT(E) rejected the application for approval u/s 80G(5) of the IT Act by observing as under :- “7.2 In the instant case it is noticed that the assessee has neither furnished a copy of regular registration u/s 12AB read with section 12A(1)(ac)(i) / 12A(1)(ac)(iii) nor any copy of regular approval under section 10(23C) read with clause (i) / (iii) of first proviso to the said section and the case is not covered under the exclusions provided vide proviso to clause (i) of section 80G(5) of the Act. The assessee is not approved under section 10(23AA) of the Act. The assessee is also not a Regimental Fund or Non-Public Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependents. In fact, the application of the assessee in form No. 10AB for registration u/s 12AB filed under the provisions of section 12A(1)(ac)(iii) of the Act has been rejected vide order dated 05/03/2024. Therefore, the condition (i) of section 80G(5) of the Income Tax Act, 1961 is also not fulfilled in this case.
In view of the above, the application filed by the assessee is hereby rejected and the provisional approval granted on 30/11/2022 under clause (iv) for first proviso to section 80G(5) of the Income Tax Act, 1961 is hereby cancelled.”
It is this order against which the assessee is in appeal before this Tribunal.
Ld. AR appearing from the side of the assessee submitted before us that the order passed by Ld. CIT, Exemption, Pune is not justified. Ld. AR submitted that the application for registration u/s 80G(5) of the IT Act was rejected only for want of copy of section 12AB registration. In this regard, Ld. AR submitted that the application for registration u/s 12AB of the IT Act was rejected by Ld. CIT(E) and thereafter a coordinate bench of this Tribunal vide order dated 12.12.2024 in has already remanded the issue of registration u/s 12AB of the IT Act to the file of Ld. CIT(E) for deciding the issue afresh after providing one final opportunity of hearing to the assessee. Accordingly, Ld. AR requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune, & requested to remand the matter of 80G(5) approval back to him for deciding the issue afresh.
Ld. DR appearing from side of the Revenue relied on the order passed Ld. CIT, Exemption, Pune, & requested to confirm the same.
In this regard, we find that admittedly the issue of registration u/s 12AB of the IT Act has been restored back to the file of Ld. CIT(E) for reconsideration. Therefore, we deem it appropriate to set-aside the impugned order passed by Ld. CIT(E) rejecting the application for approval u/s 80G(5) and remand the matter back to the file of Ld. CIT(E) for deciding the issue of approval u/s 80G(5) afresh as per fact & the law after providing reasonable opportunity