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Facts
The assessee, a registered public charitable trust, was granted provisional registration under sections 12A(1)(ac)(vi) and 80G(5)(vi) of the Income Tax Act. Subsequently, it applied for final registration under sections 12A(1)(ac)(iii) and 80G(5), but the CIT(Exemption) rejected the application via an order in Form 10AD. The assessee filed appeals contesting this rejection.
Held
The Tribunal found that the CIT(Exemption) did not properly appreciate the voluminous documents submitted by the assessee. Consequently, the Tribunal decided to restore the matter to the file of the CIT(Exemption) for fresh adjudication (de novo) and allowed the assessee to furnish further evidence. Both appeals were allowed for statistical purposes.
Key Issues
Whether the CIT(Exemption) was justified in rejecting the application for final registration under sections 12A and 80G without appreciating the evidence submitted by the assessee and without providing an amicable opportunity.
Sections Cited
12A, 12AB(1)(b)(ii), 80G, 12A(1)(ac)(vi), 80G(5)(vi), 10AC, 10AB, 12A(1)(ac)(iii), 80G(5), 10AD
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “B”: NEW DELHI
Before: SHRI AMIT SHUKLA & SHRI M. BALAGANESH
O R D E R PER M. BALAGANESH, A. M.:
1. 1. The appeal in arises out of the ld CIT(Exemption), Delhi [hereinafter referred to as „ld. CIT(E)‟, in short] in Appeal No. ITBA/EXM/F/EXM45/2022- 23/1051502453(1) dated 28.03.2023 u/s 12AB(1)(b)(ii) and in ITA No. 1621/Del/2023, arises out of the ld CIT(Exemption) Delhi [hereinafter referred to as „ld. CIT(E)‟, in short] in Appeal No. ITBA/EXM/F/EXM45/2022-23/1051502396(1) dated 28.03.2023 u/s 80G.
2. The assessee has raised the following ground of appeal in ITA No. 1620/Del/2023:- “1. That the Learned Commissioner of Income-tax (Exemption) failed to appreciate the facts of case and proceeded to reject the application filed by appellant in Form 10AB in regard to section 12A of the Income Tax Act, 1961.
2. That the Learned Commissioner of Income-tax (Exemption) further erred by not providing the amicable opportunity to the appellant before framing the orders. & 1621/Del/2023 Freed
3. That the Rejection Order is full of contradictions, which warrants the order to be set aside.
4. The appellant craves leave to add, alter, amend or forego any of the grounds of appeal before or at the time of hearing.
5. That the above grounds are without prejudice to each other.”
The assessee has raised the following ground of appeal in “1. That the Learned Commissioner of Income-tax (Exemption) failed to appreciate the facts of case and proceeded to reject the application filed by appellant in Form 10AB in regard to section 12A of the Income Tax Act, 1961.
2. That the Learned Commissioner of Income-tax (Exemption) further erred by not providing the amicable opportunity to the appellant before framing the orders.
3. That the Rejection Order is full of contradictions, which warrants the order to be set aside.
4. The appellant craves leave to add, alter, amend or forego any of the grounds of appeal before or at the time of hearing.
5. That the above grounds are without prejudice to each other.”
We have heard the rival submissions and perused the material available on record. The assessee is a registered public charitable trust engaged in carrying out charitable activities to encourage conversations around eating disorders in India. The assessee‟s core mission is to enable holistic well being in India through diverse, credible and inclusive resources for support and education for all eating disorders. It intends to acknowledge conversation around eating disorders in India and provide support to individuals and families affected by them. Provisional registration u/s 12A(1)(ac)(vi) of the Act was granted to the assessee in Form 10AC on 27.10.2021 for AYs 2022-23 to 2024-25 by the ld CIT(E). Similarly, provisional registration u/s 80G(5)(vi) of the Act was granted to the assessee in Form 10AC on 27.10.2023 for the period AY 2024-25.