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Facts
The appellant trust challenged the order of the CIT(Exemption) rejecting their applications for registration under Section 12AB and 80G of the Income Tax Act, 1961. The appeals were filed with a delay, and the trust sought condonation of this delay.
Held
The Tribunal condoned the delay in filing the appeals after finding sufficient cause. It held that the ground of rejection based on non-registration under the Rajasthan Public Trust Act, 1959, did not survive as the trust obtained the registration. The Tribunal also held that the ground based on the trust's objects benefiting a particular community was not a valid reason for rejecting the application under Section 12AB, as Section 13(1)(b) is for income computation, not registration purposes.
Key Issues
Whether the delay in filing the appeals can be condoned and whether the grounds for rejection of registration under Section 12AB and 80G by the CIT(E) were valid.
Sections Cited
12AB, 80G, 13(1)(b)
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR
Before: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA Nos. 1395 & 1396/JP/2024
In view of the above findings, while allowing the impugned order passed by Ld. CIT(E) rejecting the application u/s 12AB of the Act is hereby set aside, and Ld. CIT(E) is directed to take steps for registration of applicant u/s 12AB of the Act, in accordance with law.
As noticed above, vide impugned order dated 12.06.2024, Ld. CIT(E) rejected application u/s 80G of the Act.
The only ground for rejection of said application is that that the separate application u/s 12AB of the Act stood rejected on the same day.
As discussed above, appeal -ITA No. 1396/JP/2024 has been allowed with the direction to Ld. CIT(E) for steps for registration of the applicant trust u/s 12AB of the Act.
Consequently, the ground raised by Ld. CIT(E) for rejection of the application u/s 80G of the Act, no more survives. As a result, applicant trust deserves to be granted approval u/s 80G of the Act.
Result
As a result, this second mentioned appeal is allowed and the impugned order dated 12.06.2024 passed by Ld. CIT(E) is hereby set aside.
Appeal files be consigned to the record room after the needful is done by the office. file.
Order pronounced in the open court on 24/02/2025.