INDUS ALUMNI ASSOCIATION,AHMEDABAD vs. THE CIT(EXEMPTION), AHMEDABAD

ITA 2128/AHD/2024Status: DisposedITAT Ahmedabad01 May 20254 pages
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What did the Tribunal hold?

The Tribunal held that the CIT(E) had rejected the assessee's application for approval under section 80G(5)(iii) solely on the ground that the assessee did not possess registration under section 12AB. However, subsequent to the impugned order, the assessee was granted registration under section 12AB(1)(b) by the CIT(E) on 08.04.2025, effective for AY 2022-23 to AY 2026-27. This registration was granted pursuant to directions from a Coordinate Bench. Since the basis for the CIT(E)'s rejection no longer existed, the Tribunal found that the matter required to be restored to the file of the CIT(E) for a fresh adjudication of the application under section 80G(5)(iii) on merits, after affording the assessee due opportunity of being heard. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Indus Alumni Association, filed an appeal against the order dated 03.12.2024 by the Commissioner of Income Tax (Exemptions) [CIT(E)], Ahmedabad. The CIT(E) rejected the assessee's application for approval under section 80G(5)(iii) of the Income Tax Act, 1961. The assessee, a public charitable trust, had commenced activities on 06.01.2022 and was granted provisional registration under section 12A(1)(ac)(vi) for AY 2022-23 to AY 2024-25. The application for 80G approval was filed on 23.09.2023. The CIT(E) rejected the application without examining it on merits, citing the assessee's failure to prove valid registration under section 12A/12AB or 10(23C). The assessee contended that the rejection was illegal and that a prior rejection of its 12AB registration had been set aside by the Tribunal.

What were the issues?

1. Whether the order passed by the CIT(Exemption) rejecting the application for approval under section 80G(5)(iii) is illegal, unlawful, and against the principles of natural justice, solely on the ground of absence of registration under section 12AB? Assessee's Contentions: - The assessee argued that the rejection of the 80G application by the CIT(E) was illegal, unlawful, and against natural justice because it was based on the absence of 12AB registration. - The assessee further contended that the CIT(E) erred in not appreciating that the order rejecting its 12AB registration had been set aside by the Appellate Tribunal in ITA No. 916/Ahd/2024 on 04.11.2024. - The assessee prayed for the quashing of the rejection order and for the approval under section 80G(5)(iii) to be granted. Revenue's Contentions: - The Revenue sought an adjournment.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12AB,Section 12A,Section 10(23C)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: S/SHRI T.R. SENTHIL KUMAR

For Appellant: Shri S.N. Divatia, AR, Shri Samir Vora
Hearing: 30/04/2025Pronounced: 01/05/2025

PER MAKARAND V.MAHADEOKAR, AM:

This appeal by the assessee is directed against the order dated 03.12.2024 passed by the Commissioner of Income Tax (Exemptions), Ahmedabad [hereinafter referred to as “CIT(E)”], rejecting the assessee’s application in Form No. 10AB filed under clause (iii) of the first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961. Facts of the Case

2.

The brief facts as stated by the assessee in the statement

are such that the assessee is a public charitable trust constituted 2

by a Memorandum of Association and is also r

The order continues below.

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