Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, BENCH ‘C’ KOLKATA
Before: Hon’ble Shri N.V.Vasudevan, JM & Shri M.Balaganesh, AM ]
ORDER PER N.V.VASUDEVAN, JM:
This is an appeal by the Revenue against the order dated 02.01.2017 of C.I.T. (Exemption), Kolkata rejecting the application for grant of approval u/s 80G of the Income Tax Act, 1961 (Act).
The Assessee is a public charitable trust and enjoys the benefit of registration u/s 12AA of the Act pursuant to an order dated 21.12.2016 of CIT (Exemption), Kolkata. The assessee applied for grant of approval u/s 80G of the Act. The condition for grant of approval as laid down u/s 80G(5) of the Act, according to the Assessee have been fulfilled. The assessee had given all the details in the application for grant of approval in Form No.10G. The CIT(Exemption) however refused to grant approval u/s 80G of the Act for the following reasons :-
“Vide letter No.10E/264/2016-17/4993, the matter was fixed for hearing on 02- 11-2016. The hearing was re-fixed till 10-12-2016 due to non-compliance on 02- 11-2016. The matter was adjourned till 21-12-2016 for submission of proof of activities. The case was discussed with Shri Sanjeev Kadel (A/R). After the discussions, I am of the opinion that, this is NOT a FIT case for approval u/s 80G of the income-tax Act.
Because of the reasons mentioned above, the application for approval u/s 80G is REJECTED. This is also held that, the applicant Society is not approved for exemption to donations u/s 80G of the Income-tax Act, 1961.”
Aggrieved by the order of the CIT(E), the Assessee has preferred the present appeal before the Tribunal. We have heard the submissions of the ld. Counsel for the assessee, who submitted that the order of CIT(Exemption), does not spelt out any reasons as to why the approval is not being granted. In such circumstances it has to be presumed that there is no valid reason for rejecting the application for grant of approval to the assessee u/s 80G of the Act. The ld. DR relied on the order of CIT(Exemption), Kolkata.
We have considered the rival submissions and are of the view that the impugned order deserves to be quashed and approval u/s 80G of the Act should be directed to be given to the assessee. As rightly contended on behalf of the assesee the order of CIT(Exemption) does not spelt out as to why the approval u/s 80G of the Act is not being given. The assessee has given all the details that are required to be filed along with Form No.10G. In the absence of valid reasons assigned in the impugned order it has to be presumed that the assessee satisfies all the conditions for grant of approval u/s 80G of the Act. Therefore the approval is directed to be granted.
In the result the appeal by the assessee is allowed. Order pronounced in the open Court on 01.12.2017.