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

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”].

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.

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.