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Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE
Before: SHRI. B. R. BASKARAN & SMT. BEENA PILLAI
Date of Hearing : 22-10-2020 Date of Pronouncement : 03-11-2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal has been filed by assessee against order dated 28/06/2019 passed by Ld. CIT (E), Bangalore denying recognition under section 80 G of the act.
Assessee is a trust constituted under trust deed dated 23/02/2018. It is submitted that, application for grant of registration under section 12 AA of the Act was filed on 26/03/2018 and recognition under section 12AA the Act was issued on 17/09/2019. It is submitted that various details were called for by Ld.CIT(E) vide notice dated 06/06/2018. Assessee could furnish all details vide its letter dated 17/06/2019. It has been submitted by Ld.AR that, there was no further communication from Ld.CIT(E) however, denied registration under section 80G vide order dated 28/06/2019. It has been submitted that Ld. CIT (A) rejected the application for non- compliance without considering the submissions filed.
Ld.AR placed reliance on decision of coordinate bench of Tribunal in case of M/s Manipal Alimony of Nphrology Trust vs CIT in and 549/B/2013 wherein, this Tribunal following decision of Hon’ble Karnataka High Court in case of DDIT (E) vs Meenakshi Endowment Trust reported in 354 ITR 219, held that at the time of grant of registration under section 12A of the Act as well as approval under section 80G(5) (vi) of the Act, absence of activities of the trust cannot be the basis to refuse the approval. On the contrary Ld.Sr.DR relied on orders passed by Ld.CIT(A).
We have perused submissions advanced by both sides in light of records placed before us. We are in agreement with the contentions put forth by Ld.AR. The reasons assigned for not granting approval under section 80G(5)(vi) is directly contradictory to the action of Ld.CIT(E) in granting registration under section 12A of the Act. We therefore set aside the order of Ld.CIT(E) and remand the question of grant of approval under section 80G(5) (vi) of the Act to Ld.CIT(E) for fresh consideration in the light of the decisions referred to by Ld.AR. Needless to say that, proper opportunity of being heard should be granted to assessee. Assessee is also directed to file all relevant details as called upon.
Accordingly grounds raised by assessee stands allowed for statistical purposes. In the result appeal filed by assessee stands allowed for statistical purposes. Order pronounced in the open court on 3rd Nov, 2020.