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Facts
The assessee filed an application for renewal of registration under Section 80G(5)(ii) of the Income Tax Act, 1961. The CIT(E) rejected the application, deeming it premature. The assessee contended that the CIT(E) failed to consider documents and that the application was not premature as previous registration was valid until AY 2024-25.
Held
The Tribunal found that the CIT(E) had dismissed the application primarily on the ground of it being premature, potentially overlooking a letter from the assessee. The Tribunal set aside the impugned order and restored the application to the file of the CIT(E) for verification and decision.
Key Issues
Whether the CIT(E) was justified in rejecting the application for renewal of registration as premature, and if relevant documents submitted by the assessee were considered.
Sections Cited
80G, 80G(5), 80G(5)(ii), 12AA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW
Before: SHRI KUL BHARAT & SHRI ANADEE NATH MISSHRA
PER KUL BHARAT, VICE PRESIDENT.:
This appeal, by the assessee is directed against the order of the Learned Commissioner of Income-tax (Exemption), Lucknow dated 16.10.2024. The assessee has raised the following grounds of appeal: - “1. The Ld CIT(E) has erred in rejecting the application filed by the appellant in Form LOAB for seeking renewal of registration clause(ii)(b)(B) of second proviso of section 80G(5) provisional to Permanent, approved vide order dated 2.10.21 from 2.10.21 to AY 2024-25.
2. The Ld. CIT(E) has erred in rejecting the application for the renewal of registration filed on 17.4.2024 u/s 8OG(5)(ii) without considering the reply filed in response to the notice.
3. The Ld. CIT(E) has erred in rejecting the application for renewal registration u/s 80G(5)(ii) and observing the same as non-maintainable and premature.
4. The order of Ld CIT is against law, facts and circumstances of the case.
5. The appellant craves leave to add, alter, amend, modify or delete all or any of the Grounds of appeal on or before the date of hearing of appeal.”
Page 2 of 4 2. The facts giving rise to the present appeal are that the assessee filed an application dated 17.04.2024 for registration u/s 80G(5)(ii) of the Income Tax Act, 1961 (“Act”, for short) in Form no. 10AB. The application filed was rejected by the Ld. CIT(E) on the ground that the application is pre-mature. Aggrieved against this, the assessee is in appeal before this Tribunal.
Apropos to the grounds of appeal, the Ld. Counsel for the assessee vehemently argued that the action of the Ld. CIT(E) is arbitrary and against the facts of the case. Ld. Counsel further reiterated the submissions as made in the written submissions. As per the assessee, provisional exemption u/s 80G of the Act from 02.10.2021 to A.Y. 2024-25. On 17.04.2024, the assessee filed an application u/s 80G(5)(ii) of the Act of 1st proviso for provisional to permanent registration. On 14.08.24, the Ld. CIT(E) issued a letter seeking certain information. Further, on 20.08.2024, the assessee filed information/documents duly filed online. On 25.07.2024, renewal of registration u/s 12AA of the Act was granted from 2024-25 to 2028-29. It is contended that the Ld. CIT(E) failed to consider the documents filed on 20.08.2024 and erred in observing that no reply was received. It was further contended that the application seeking registration is not pre-mature as the earlier registration was upto A.Y. 2024-25. It is also contended that the registration u/s 12AA of the Act has also been renewed for five (5) years as per order dated 25.07.2024. Therefore, the Ld. CIT(E) was not justified in rejecting the application.
On the other hand, the Ld. CIT-DR submitted that as per the order of the Ld. CIT(E), no such reply was received. Therefore, Page 3 of 4 in the absence of relevant details, the Ld. CIT(E) was rightly rejected the application of the assessee.
We have heard rival submissions and perused the material available on record. We find that the Ld. CIT(E) in para nos. 1 to 3 of his impugned order has decided the issue by observing as under: - “1. The above named society had filed an application dated 17.04.2024 for registration under section 80G(5)(ii) of the I.T Act in Form no. 10AB. These provisions are applicable in respect of trust/institution registered u/s 80G(5) of the Act, for the period of five years & the period of said registration is due to expire. As the application was premature, the same was found to be prima-facie non-maintainable and accordingly vide letter dated 14.08.2024 certain Clarifications were sought from the assessee. However, till date no response has been received in this regard.
As the application dated 17.04.2024 has been filed under section 80G(5)(ii) of the Income Tax Act 1961, the same is not maintainable.
3. Accordingly, the application filed by the assessee is treated as non- maintainable and for statistical purpose the application filed by the assessee is treated as ‘rejected’. However, no adverse inference is drawn against the assessee. The provisional registration granted u/s 80G(5)(iv) of IT Act 1961 in the form 10AC by the CPC and having registration No. AACTHO016MF20214 dated: 02-10-2021 to AY 2024-25, will remain valid.”
From the above finding, it is clear that the application was dismissed purely on the ground that the such application was pre-mature. However, it is the case of the assessee that vide letter dated 20.08.2024 which is enclosed in paper book was not considered by the Ld. CIT(E). As per the letter dated 21.08.2024, it is stated that the registration u/s 12AA of the Act and u/s 80G(5) of the Act was granted provisionally from October 2nd, 2021 to the A.Y. 2024-25. It was also stated that the approval u/s 12AA of the Act was granted on July 25th, 2024. It appears that this letter escaped the attention of the Ld. CIT(E). We, therefore, set aside the impugned order and restore the application back to the file of the Ld. CIT(E) to verify the correctness of the contention of the assessee and grant Page 4 of 4 registration as per law, accordingly. Grounds of appeal of the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 07/08/2025.