Loading judgment…
Facts
The assessee filed an application for approval under Section 80G(5) of the Income Tax Act, which was rejected by the CIT (Exemption) on the ground that its application for registration under Section 12AB had previously been rejected.
Held
The Tribunal observed that the assessee's application for registration under Section 12AB had subsequently been restored to the file of the CIT (Exemption) for reconsideration. Consequently, the Tribunal set aside the order rejecting the 80G(5) application and remanded the matter back to the CIT (Exemption) to decide the issue afresh, after providing a reasonable opportunity of hearing.
Key Issues
Whether the rejection of approval under Section 80G(5) is justified when the underlying registration under Section 12AB, cited as the reason for rejection, has been remitted back for fresh consideration.
Sections Cited
Section 80G(5), Section 12AB, Section 12A(1)(ac)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 30.09.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for approval u/s 80G(5) of the IT Act.
There is delay in filing of the present appeal. We are satisfied with the reasons mentioned in the application for condonation of delay duly supported by an affidavit that the applicant was prevented by sufficient cause for not filing the appeal within the prescribed time limit. After hearing Ld. DR, we condone the delay and proceed to adjudicate the appeal.
Facts of the case, in brief, are, that the assessee filed its application for approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act on 11.03.2024.
The above application for approval u/s 80G(5) of the IT Act was rejected by Ld. CIT, Exemption, Pune on the ground that the application of the assessee for registration u/s 12AB of the IT Act has already been rejected and in the absence of registration u/s 12AB r.w.s. 12A(1)(ac) of the IT Act, the assessee is not entitled to get the approval u/s 80G(5) of the IT Act.
We have heard Ld. Counsels from both sides and perused the material available on record. In this regard, we find that admittedly the application of assessee for registration u/s 12AB of the IT Act was rejected vide order dated 30.09.2024 by Ld. CIT, Exemption, Pune and subsequently when the matter reached before the Tribunal, the Tribunal vide order dated 07.05.2025 in in the case of assessee itself has restored the matter back to the file of Ld. CIT, Exemption, Pune for reconsidering the issue of registration u/s 12AB of the IT Act. Considering the totality of the facts of the case, we find some force in the arguments of Ld. Counsel of the assessee and accordingly in the light of fact that the application for registration u/s 12AB has already restored to the file of Ld. CIT, Exemption, Pune for reconsidering the same, we deem it appropriate to set-aside the impugned order passed by Ld. CIT, Exemption, Pune and remand the matter back to the file of Ld. CIT, Exemption, Pune to decide the issue of approval u/s 80G(5) of the IT Act afresh and as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce the additional evidences/requisite documents/information/explanation in support of the application for approval u/s 80G(5) of the IT Act without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate orders as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes.