SMART CITES INDIA FOUNDATION,BANGALORE vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE

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ITA 77/BANG/2020Status: DisposedITAT Bangalore01 June 2020AY 2019-204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CIT(E) had granted 12AA registration, indicating satisfaction with the assessee's objects. The Tribunal found that the CIT(E) had not properly examined the 80G application and, following precedent, remanded the issue for fresh consideration.

What were the facts?

The assessee applied for registration under Section 12AA and 80G. While Section 12AA registration was granted, the application for Section 80G was rejected by the CIT(E) citing lack of noticeable activities. The assessee argued that the CIT(E) had already granted 12AA registration, implying satisfaction with the objects.

What were the issues?

Whether the rejection of Section 80G registration was justified when Section 12AA registration was granted, and if the CIT(E) properly examined the application for 80G.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE

Before: SHRI A.K GARODIA & SMT. BEENA PILLAI

For Appellant: Shri R Ramakrishnan, C.A
For Respondent: Ms. Neera Malhotra, CIT – DR

Date of Hearing : 01-06-2020 Date of Pronouncement : 01-06-2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal has been filed by assessee against order dated 25/11/19 under section 80G(5)(vi)12AA(1)(b)(ii) of the Act, passed by Ld. CIT (E), Bangalore.

2.

Ld.AR submitted that assessee filed application seeking registration under section 12 AA on 10/05/2019. He submitted that registration under section 12AA was granted to assessee on Page 2 of 4 ITA 77/Bang/2020 A. Y : 2019 – 20 25/11/2019. In the mean while assessee also filed application for registration under section 80 G on 10/05/2019.

3.

Ld.AR submitted that Ld.CIT(E) rejected application for registration u/s 80G(5)(vi) on 25.11.2019 stating that; “ 2. The trust reply submitted have been examined. The trust though established on 02/02/2015, has not carried out noticeable activities to grant exemption under section 80G of the I.T.Act.”

4.

It has been submitted that the date on which registration under section 12AA was granted, on the same date application for recognition under section 80G has been denied. He submitted that Ld.CIT(E) rejected the application without verifying details filed by assessee. Ld.AR submitted that there is nothing brought on record by Ld.CIT(E) to establish violation of section 80 G of the act, and that Ld.CIT (E) himself granted assessee registration under section 12 AA of the Act. It was thus submitted by him that there is no basis for rejecting the application for recognition under section 80G.

5.

At this juncture, Ld.CIT DR submitted that issue may be sent back to Ld.CIT(E) for reconsideration of the application.

6.

We have perused arguments advanced by both sides. In the facts of present case, assessee was holding valid registration under section 12 AA of the Act, as on date of impugned order, which conversely means that Ld.CIT (E) was satisfied with objects of assessee in not disputing the registration under section 12 AA. 6.1. We also notice that, Ld.CIT(E) has not examined the application of assessee in terms of section 80 G (5) of the Act. Co- Page 3 of 4 ITA 77/Bang/2020 A. Y : 2019 – 20 ordinate Bench of this Tribunal in case of Indic Science Research Trust Vs. CIT(E), in for Asst. Year 2018- 19 by order dated 20/7/2018 had remanded identical issue to Ld. CIT for fresh consideration. Respectfully following the view taken by coordinate benches of this Tribunal in above mentioned decisions we remand the question of grant of approval under section 80 G (5) (vi) of the Act to Ld.CIT (E) for fresh consideration the light of decisions referred to herein above. 6.2. We accordingly, set aside the appeal to Ld.CIT(E) for adjudicating it afresh in accordance with law. Needless to say that, proper opportunity of being heard must be granted to assessee as per law. In the result, appeals filed by assessee stands allowed for statistical purposes. Order pronounced in the open Court on 1st June 2020. Sd/- Sd/- (A.K GARODIA) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 01/06/2020 /Vms/ Copy to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT, Bangalore 6. Guard file By order

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