BENIPRASAD GOENKA,MUMBAI vs. CIT (EXEMPTION), MUMBAI

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ITA 7303/MUM/2019Status: DisposedITAT Mumbai11 June 2021AY 2019-203 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the approval should have been granted from the assessment year immediately following the financial year in which the application was made, as per the 4th proviso to Section 80G(5). Therefore, the matter was referred back to the CIT(E) for de novo review.

What were the facts?

The assessee, a charitable trust, applied for approval under Section 80G of the Income Tax Act. The Commissioner granted approval, but prospectively from assessment year 2020-21, instead of from the date of application.

What were the issues?

Whether the approval under Section 80G should be granted prospectively or from the date of application, considering the relevant provisos to the section.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “B” MUMBAI

Before: SHRI MAHAVIR SINGH & SHRI S. RIFAUR RAHMAN

For Appellant: Mr. Rahul Raman, DR
For Respondent: Mr. Rahul Raman, DR
Hearing: 26/04/2021Pronounced: 11/06/2021

ORDER PER S. RIFAUR RAHMAN, A.M. The assessee is in appeal before against the granting of approval u/s 80G of the Income Tax Act, 1961 (in short ‘Act’) by the CIT(E), Mumbai.

2.

We noticed from the record that assessee is a charitable trust registered under Bombay Public Trust, 1950. The assessee was granted Registration u/s 12A of the Income Tax Act, 1961 vide order dated 12.07.2018. Subsequently, the assessee filed an application with the CIT(Exemption) for granting approval u/s 80G(5) of the Act on 03.08.2018.

Beniprasad Goenka 2 The Ld. CIT(A) granted approval vide order dated 30.09.2019 for assessment year 2020-21 onward and not from the date of application.

3.

Aggrieved with the approval u/s 80G(5) of the Act prospectively from assessment year 2020-21 instead of from the date of application appeal filed by the assessee.

4.

Considered the rival submissions of both the parties and it is fact on record that assessee is already approved u/s 12AA of the Act and assessee also applied for registration u/s 80G vide application dated 03.08.2018. As per 4th proviso to section 80G(5) the approval has to be granted from the assessment year immediately following the financial year in which such application is made. Therefore, in our considered view, the approval granted is not as per the above provisions. Therefore, we deem it fit and proper to refer this issue back to the file of CIT(E) to review the approval granted u/s 80G and grant the registration u/s 80G de novo as per law.

5.

Accordingly, ground raised by the assessee is allowed for statistical purpose.

Order pronounced in the open Court on 11/06/2021.

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