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Facts
The assessee trust applied for registration under Section 80G of the IT Act. The CIT, Exemption, rejected the application, stating that the assessee failed to provide a copy of its registration under Section 12A/12AA obtained prior to 01.04.2021, implying misrepresentation.
Held
The Tribunal found that the assessee had indeed obtained registration under Section 12AA prior to 01.04.2021. Therefore, the order of the CIT was set aside, and the matter was remanded for fresh consideration.
Key Issues
Whether rejection of Section 80G registration solely for non-submission of prior Section 12A/12AA registration is justified when such prior registration exists.
Sections Cited
80G, 80G(5), 12A, 12AA, 12AB, 12A(1)(ac)
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Income Tax Appellate Tribunal, PUNE BENCH “B”, 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 13.11.2024 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 is a trust 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 20.05.2024. With a view to verify the genuineness of activities of the assessee and fulfillment of conditions laid down in clauses (i) to (v) of section 80G(5) of the IT Act, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 24.06.2024 requesting the assessee to upload certain other information/clarification as mentioned in the notice.
The assessee in response to above notice furnished desired details. After verifying these details, Ld. CIT, Exemption, Pune found certain discrepancies and asked for their clarification by issuing notice dated 08.10.2024. It was specifically asked by the Ld. CIT, Exemption, Pune that you have obtained regular registration u/s 12AB of the IT Act under clause (i) of section 12A(1)(ac) of the IT Act but it seems that you were not registered u/s 12A/12AA of the IT Act prior to 01.04.2021, since the copy of such registration is not filed before me. Accordingly, Ld. CIT, Exemption, Pune asked the assessee to provide copy of above registration u/s 12A/12AA of the IT Act. However, accordingly to Ld. CIT, Exemption, Pune the copy of above said registration obtained by the assessee u/s 12A/12AA prior to 01.04.2021 was not produced by the assessee, therefore, Ld. CIT, Exemption, Pune rejected the application for approval u/s 80G(5) of the IT Act by observing as under :- “9.1 It is observed that the assessee has again submitted the copy of regular registration issued under section 12A(1)(ac) (i) of the Act on 23/09/2021 in form 10AC bearing DIN 'AABAT2655AE2021801' as Annexure 'B'. However, the assessee has not submitted a copy of registration u/s 12A/12AA prior to 01/04/2021. Thus, the assessee has failed to submit the valid registration prior to 01/04/2021 and therefore, it is presumed that the regular registration obtained u/s 12A(1)(ac) (i) of the Act has been obtained by mis-representation of the facts. Thus, the assessee has failed to fulfill the primary condition for approval laid down under section 80G(5).
In view of the above, the application filed by the assessee is hereby rejected. Also, for the reasons discussed in Para 9.1 above, the provisional approval granted on 23/09/2021 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 application for registration u/s 80G(5) was rejected merely on a technical ground of not furnishing the copy of registration u/s 12A/12AA obtained prior to 01.04.2021 by the assessee. Ld. AR in this regard submitted that the assessee already obtained registration u/s 12AA of the IT Act from the office of the Commissioner of Income Tax, Pune vide order dated 02.02.2011. Ld. AR further pointed out that the copy of above said registration u/s 12AA of the IT Act is produced before the Bench on page no.71 of the paper book. Accordingly, it was submitted by Ld. AR that the rejection of application for approval u/s 80G(5) of the IT Act by Ld. CIT, Exemption, Pune is not correct since the assessee was already registered prior to 01.04.2021. Accordingly, Ld. AR requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and to allow the application for approval u/s 80G(5) of the IT Act.
Ld. DR appearing from the side of the Revenue supported the orders passed by the sub-ordinate authorities and requested to confirm the same.
We have heard Ld. Counsels from both the sides and perused the material available on record. We find that Ld. CIT, Exempion, Pune rejected the application for approval u/s 80G(5) of the IT Act under the impression that the assessee has obtained registration u/s 12A by misrepresenting the facts. However, in this regard, we find that the assessee trust was already registered u/s 12AA prior to 01.04.2021 vide order dated 02.02.2011 by office of the Commissioner of Income Tax, Pune. The copy of registration issued by office of the Commissioner of Income Tax, Pune is also produced before us. Considering the totality of the facts of the case and in the interest of justice, & without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to his file with a direction to decide the application afresh as per fact and law after providing reasonable opportunity of hearing to the assessee since the assessee was already registered u/s 12AA of the IT Act prior to 01.04.2021 vide order 02.02.2011. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune in this regard and produce requisite information/documents in support of approval u/s 80G of the IT Act without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee in this appeal are partly allowed.