ANTHILL CREATIONS FOUNDATION,FARIDABAD vs. CIT(EXEMPTION), CHANDIGARH

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ITA 2097/DEL/2018Status: DisposedITAT Delhi23 April 2019AY 2018-195 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(Exemptions) erred in dismissing the application as premature. Since the assessee had been granted registration under section 12A, indicating satisfaction with its charitable activities and objects, and no violation of 80G(5) conditions was noted, the assessee was entitled to approval.

What were the facts?

The assessee filed an application for approval under section 80G(5)(vi) of the Income Tax Act, 1961, simultaneously with an application under section 12AA. The CIT(Exemptions) dismissed the 80G application as premature, despite the assessee having recently been granted registration under section 12A.

What were the issues?

Whether an application for approval under section 80G(5)(vi) is premature if filed simultaneously with a section 12AA application, and if registration under section 12A is sufficient to warrant 80G approval.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “A” : DELHI

Before: SHRI BHAVNESH SAINI & SHRI L.P. SAHU

Hearing: 22.04.2019Pronounced: 23.04.2019

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “A” : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA.No.2097/Del./2018 Assessment Year 2018-2019 M/s. Anthill Creations Foundation, 190/9, The CIT (Exemptions), Sector-9, Faridabad, vs Haryana – 121 006. Chandigarh. PAN AAPCA2784F (Respondent) For Assessee : Shri I.P. Bansal & Shri Sanjay Goel, Advocates For Revenue : Shri P.V. Gupta, Sr. D.R. Date of Hearing : 22.04.2019 Date of Pronouncement : 23.04.2019 ORDER PER BHAVNESH SAINI, J.M.

This appeal by Assessee has been directed against the Order of the Ld. CIT (Exemptions), Chandigarh, Dated 30.01.2018 under section 80G(5)(vi) of the Income Tax Act, 1961.

2 ITA.No.2097/Del./2018 M/s. Anthill Creations Foundation, Faridabad.

2.

The Ld. CIT(E) noted that in the present case assessee filed application in prescribed Form for approval under section 80G(5)(vi) of the Income Tax Act, 1961. The assessee also simultaneously filed an application under section 12AA of the I.T. Act, 1961. The Ld. CIT(E) noted that though the registration under section 12A have been granted to assessee recently, but, request for approval under section 80G(5)(vi) of the Income Tax Act is treated as premature. The same was accordingly dismissed.

3.

Learned Counsel for the Assessee submitted that issue is covered by the Order of ITAT, Delhi Bench in the case of Bharat Bhushan Jain Charitable Trust vs. CIT (Exemptions), New Delhi [2019] 103 taxmann.com 296 (Delhi-Tribu.) in which under similar circumstances, the application for assessee was found premature. However, approval under section 80G(5) have been granted. The Order of the Tribunal reads as under :

 “It is not in dispute that assessee has been granted registration under section 12A meaning thereby,

3 ITA.No.2097/Del./2018 M/s. Anthill Creations Foundation, Faridabad. Commissioner (Exemptions) was satisfied about the charitable activities carried-out by the assessee and the objects of the assessee are charitable in nature. The Commissioner (Exemptions) had not disputed that assessee satisfied the conditions of section 80G(5). It is also not in dispute that assessee had carried-out some of the charitable activities in furtherance to its objects. Therefore, there was no basis for Commissioner (Exemptions) to reject the application under section 80G(5) of the Act.[para-5]

 In view of the above, the impugned order is set aside and the Commissioner (Exemptions) is directed to grant approval/exemption to the assessee under section 80G(5). [Para 5.1]

 In the result, appeal of assessee is allowed. [Para 61]”

4.

The Ld. D.R. did not dispute the above facts. However, stated that application was premature.

5.

Considering the facts of the case, we are of the view that the issue is covered by the Order of the ITAT,

4 ITA.No.2097/Del./2018 M/s. Anthill Creations Foundation, Faridabad. Delhi Bench in the case of Bharat Bhushan Jain Charitable Trust vs. CIT (Exemptions), New Delhi (supra) in which also application under section 80G(5) was found premature. It may also be noted here that the Ld. CIT(E) did not record anything in the Order, if assessee violated conditions of Section 80G(5) of the I.T. Act. Since in the present case also assessee has been granting registration under section 12A of the I.T. Act, therefore, Ld. CIT(E) was satisfied about the charitable activities carried out by the assessee and the objects of the assessee are charitable in nature. Therefore, assessee is entitled for approval under section 80G(5) of the Income Tax Act, 1961. We, accordingly, set aside the impugned order of the Ld. CIT(E) and direct the Ld. CIT(E) to grant approval/exemption to the assessee under section 80G(5) of the I.T. Act, 1961, from the date of application.

6.

In the result, appeal of Assessee allowed. Order pronounced in the open Court.

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