MADHAV GANDHE FOUNDATION,NAGPUR vs. ITO WARD-1, EXEMP, NAGPUR, NAGPUR

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ITA 582/NAG/2024Status: DisposedITAT Nagpur04 February 2025AY 2022-23Bench: SHRI V. DURGA RAO (Judicial Member)1 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 noted that the assessee was subsequently granted registration under section 12AB. Given this development, the Tribunal remitted the matter back to the CIT(E) for fresh adjudication.

What were the facts?

The assessee, a society engaged in charitable activities, applied for provisional approval under section 80G(5). The CIT(E) rejected the application due to discrepancies and the rejection of its application for registration under section 12AB. The assessee's 12AB registration was later granted.

What were the issues?

Whether the assessee is eligible for approval under section 80G(5) when its 12AB registration was granted after the rejection of its 80G application.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH : NAGPUR

Before: SHRI V. DURGA RAO

Hearing: 28.01.2025Pronounced: 04.02.2025

ORDER PER V. DURGA RAO, J.M. : This appeal has been filed by the assessee against the order dated 22.05.2024, of the learned CIT(E), Pune, in rejecting the provisional approval granted u/sec.80G(5) of the Income Tax Act, 1961, [hereinafter in short “the Act”]. 2. At the outset, there is a delay of 115 days in filing the appeal before the Tribunal. I am satisfied with the condonation of delay affidavit and petition filed by the assessee and, therefore, 2 ITA.No.582/NAG./2024 condone the delay of 115 days in filing the appeal before the Tribunal and proceed to decide the appeal on merits.

2.

Facts of the case, in brief, are that the assessee is a society engaged in charitable activities i.e., imparting education and is a non-profit making organization. The assessee made an application for approval in Form 10AB under clause (iii) of first proviso to sub- sec.(5) of Sec.80G of the Act. The learned CIT(E), in order to verify the genuineness of the activities of the assessee society, issued notice through ITBA portal on 14.03.2024 requesting the assessee to upload certain information/clarifications, which are the basic details required to ascertain the overall nature of the activities of the assessee society. In response to the said notice, the assessee society submitted certain documents along with the application. The learned CIT(E) noticed various discrepancies and issued another notice dated 02.05.2024. In response to the said notices, the assessee submitted that it had filed Form-10AB for the permanent registration u/sec.12AB(ii) on 26.04.2024 and requested to keep the proceedings u/sec.80G in abeyance till the proceedings u/sec.12AB(iii) are concluded. The learned CIT(E) noted that the application of assessee in Form No.10AB for registration u/sec.12AB filed under the 3 ITA.No.582/NAG./2024 provisions of sec.12A(1)(ac)(iii) of the Act has been rejected vide order dated 18.04.2024. Therefore, since the conditions of sec.80G(5)(i) are not fulfilled by the assessee society, the learned CIT(E) cancelled the provisional approval granted on 31.08.2021 under clause (iv) for first proviso to sec.80G(5) of the Act.

3.

Aggrieved by the order of the learned CIT(E), the assessee society carried the matter in appeal before the Tribunal.

4.

During the course of hearing, Learned Counsel for the Assessee submitted that the assessee society was granted registration u/sec.12AB(1) of the Act on 11.10.2024 by the learned CIT(E) and therefore, the assessee society tried to file fresh application u/sec.80G of the Act but the same was denied by the portal. He, accordingly, submitted that the since the assessee society granted registration u/sec.12AB(1), the application of the assessee society for approval u/sec.80G(5) may be sent back to the file of learned CIT(E) for afresh adjudication with a direction to provide adequate opportunity of being heard to the assessee to substantiate it’s case.

5.

The Learned DR did not object to the factual position.

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