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Facts
The assessee's application for permanent registration under Section 12A and approval under Section 80G was rejected by the CIT(E) on grounds of non-compliance and limitation. The assessee contended that it was not given adequate opportunity and that the rejection disregarded the welfare intent of the law.
Held
The Tribunal held that the assessee did not receive a fair opportunity to comply with the requirements. Consequently, the matter was restored to the CIT(E) for fresh adjudication on merits, setting aside the impugned order and restoring the provisional registration.
Key Issues
Whether the CIT(E) erred in rejecting the Section 12A application solely on limitation grounds without considering the merits and affording adequate opportunity to the assessee.
Sections Cited
12AA, 80G, 12A, 12A(1)(ac), 12A(1)(ac)(3), 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, B BENCH, PUNE
Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE
: Shri Abhay Shastri Assessee by : Shri Ajay Kumar Keshari- Revenue by CIT Date of hearing : 02.04.2025 Date of pronouncement : 04.04.2025 आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of the assessee is directed against the order of Ld. CIT(E) dated 13.12.2024 u/s 12AA and 80G of the Income Tax Act.
The Assessee has raised following grounds of appeal in 1. The Leamed CIT(E) erred in rejecting the application under Section 12A solely on limitation grounds, disregarding the merits of the case.
2. The Leamed CIT(E) failed to provide adequate opportunity for the appellant to present evidence demonstrating the genuineness of charitable activities and compliance with Section 12A provisions violating the principles of natural justice.
The Learned CIT(E) disregarded the welfare-oriented intent of the Income Tax Act, 1961, and the purpose of Section 12A, which is to promote charitable activities benefiting society.
4. The Learned CIT(E)'s decision conflicts with the Directive Principles of State Policy within the Constitution of India. These principles highlight the legislative intent to support charitable trusts for the public good, 5. The above grounds of appeal may kindly be allowed to be amended, altered, modified etc in the interest of natural justice.
3. At the outset Ld. Counsel for the assessee submitted that the application for permanent registration u/s 12A(1)(ac) of the Act was filed on Form No. 10AB on 13.06.2024. However for non-compliance and also for little time given by Ld. CIT(E), the assessee’s application has been rejected and even the provisional registration granted on 21.03.2023 has also been cancelled. The only prayer made is to afford one more opportunity to which Ld. DR was fair enough in not objecting.
We have heard rival contentions and perused the record placed before us. Admittedly the assessee did not get fair opportunity to make compliance to the details called for Ld. CIT(A) with regard to the application for permanent registration u/s 12A(1)(ac)(3) of the Act. Considering the facts of the case and also in larger interest of justice we restore the issue on merits to the file of Ld. CIT(E) for afresh adjudication and to decide the application of the assessee filed on Form No. 10AB dated 30.06.2024 for permanent registration u/s 12A. Thus the impugned order is set aside and the provisional registration granted to the assessee on 21.01.2023 is restored till Ld. CIT(E) adjudicates the issue of permanent registration afresh in light of direction given above. Grounds of appeal raised in is allowed for statistical purposes.
is concerned the same relates to the application for provision u/s 80G of the Act. Since we have restored the issue of registration u/s 12A of the Act to the Ld. CIT(E), therefore the issue regarding approval u/s 80G(5) of the Act also deserves to be set aside to the file of Ld. CIT(E) for afresh adjudication. Needless to mention proper opportunity shall be granted to the assessee. Grounds of appeal raised in are allowed for statistical purposes.
In the result both the appeals of the assessee are allowed for statistical purposes.
Order pronounced on this 04th day of April, 2025.