OM SHRI SWAMI SAMARTH CHARITABLE TRUST,UNCHGAON vs. CIT(EXEMPTION), PUNE

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ITA 1996/PUN/2019Status: DisposedITAT Pune29 August 2022AY 2019-203 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that Section 12AA registration implies automatic eligibility for Section 80G registration. Therefore, the CIT(Exemption) was directed to re-adjudicate the Section 80G registration application.

What were the facts?

The assessee trust challenged the denial of Section 80G relief despite having Section 12AA registration. The CIT(Exemption) denied the relief citing excess expenditure on religious activities exceeding the 5% limit.

What were the issues?

Whether denial of Section 80G registration is justified when the assessee already possesses Section 12AA registration, and if expenditure limits under Section 80G(5)(vi) are applicable in such cases.

Which sections of the Income-tax Act were involved?

Section 80G(5)(vi),Section 12AA

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Income Tax Appellate Tribunal, “A”

Before: SHRI S.S.GODARA & DR. DIPAK P. RIPOTE

For Respondent: Shri Naveen Gupta – DR
Hearing: 08/08/2022Pronounced: 29/08/2022

ORDER

Per S.S.Godara, JM:

1.

This assessee’s appeal for Assessment Year 2019-20 is directed against the Commissioner of Income Tax(Exemption), Pune’s order dated 30.09.2019 passed in case no.ITBA/EXM/S/EXM2/2019-20/80G/10267, in proceedings u/s.80G(5)(vi) of the Income Tax Act, 1961 [in short “the Act”].

Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.

2.

We note with the able assistance coming from the Revenue side that the assessee’s sole substantive grievance raised herein challenges correctness of the CIT(Exemption)’s action denying section 80G relief despite the fact that it had already been granted section 12AA registration on 19.02.2019.

3.

Learned CIT(DR) vehemently argued in light of the CIT(Exemption)’s tabulation in page 3 that the assessee’s expenditure on religious activities in assessment years 2016-17 to 2018-19 had exceeded more than the prescribed limit of 5% under section 80G(5)(VI) of the Act thereby disentitling it from the impugned section 80G registration. We note that case law CIT vs. Lok Seva Sansthan [2019] 105 taxmann.com 202 (Allahabad); upheld in 263 Taxman 495(SC) as well as CIT Vs. Seth Vinod Kumar Somani Charitable Trust [2020] 113 taxmann.com 143 (SC) holds that the impugned registration is automatic to section 12AA relief granted to an assessee. Faced with this situation, we direct the learned CIT(Exemption) to adjudicate the assessee’s section 80G registration issued as per law within three effective opportunities of hearing. Ordered accordingly.

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