SHRI DASHABAJ VANIK GNYATI MANDAL,SURAT vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

This is bunch of four appeals filed by separate assessee-trusts, pertaining to same Assessment Year 2022-23, are directed against the separate orders passed by the Commissioner of Income-Tax(Exemption)-Ahmedabad [in short “ld. CIT(Exemption)”] wherein Ld. CIT(Exemption) has rejected the application of the assessee-trusts for recognition under section 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

Since the issues involved in all these four appeals are common and identical; therefore, all the four appeals have been heard together and are being disposed of by way of this consolidated order. For the sake of convenience, the grounds as well as the facts narrated in for assessment year 2022-23, have been taken into consideration for deciding all these four appeals en masse. , 337, 352 & 353/SRT/2023 A.Y. 22-23

Grounds of appeal raised by the assessee in “lead” case in are as follows: “(1) The CIT, Exemption was not justified in rejecting application for recognition u/s 80G. (2) Without prejudice to the above, with the application u/s 80G only premised upon the rejection of application u/s 12AB and that the Tribunal setting aside the order u/s 12AB, the order appealed against rejection of application of section 80G may also be set aside. (3) All of the above grounds are prejudice to one another. (4) The appellant craves leave to add, alter or vary any of the grounds of appeal.”

The similar and identical grounds of appeals, are raised by all the four assessee-trusts

We have heard both the parties. We note that in case of these four assessee-trusts, this Tribunal has remitted the matter relating to registration u/s 12AB of the Act to the file of the Ld. CIT(Exemption), with the direction to grant the registration in accordance with law. The details of the appeals/cases remitted back to the file of the ld CIT(E ) are as follows:

We note that in order to grant recognition under section 80G of the Act, the assessee-trust should be registered u/s 12AB of the Act. If the assessee- trust is not registered 12AB of the Act, then in that circumstances, recognition under section 80G of the Act cannot be granted. Therefore, all these four appeals of different assessee-trusts, relating to recognition u/s 80G of the Act, cannot be adjudicated by us, as the issue relating to registration u/s 12AB of the Act, has been remitted back by this Tribunal, to the file of ld CIT(Exemption). We also note that application for recognition u/s 80G of the Act can be entertained by Ld. CIT(Exemption), provided, the assessee-trust is registered u/s 12AB of the Act, since the matter relating to registration has been remitted back to the file of Ld. CIT(Exemption) therefore, we cannot adjudicate the issue relating to recognition u/s 80G of the Act; therefore, we are of the view that these four lis should also be remitted back to the file of Ld. CIT(exemption) to grant recognition u/s 80G of the Act in accordance with law. Accordingly, we set aside the order of Ld. CIT(Exemption) and remit the issue back to the file of Ld. CIT(Exemption) to grant recognition u/s 80G of the Act in accordance with law. The assessee-trusts are also directed to submit relevant documents and evidences, as and when would be called for by Ld. CIT(Exemption). Therefore, statistical purposes, all the four appeals of separate assessee -trusts are allowed. , 337, 352 & 353/SRT/2023 A.Y. 22-23

In combined result, all four appeals filed by the separate assessee-trusts (in 337/SRT/2023, 352/SRT/2023 & 353/SRT/2023) are allowed for statistical purposes in above terms.