SHRI OJUS TRUST,SURAT vs. THE COMMISSIONER OF INCOME TAX,(EXEMPTION), AHMEDABAD

Assessee by Shri Hiren Vepari, C.A. Department by Shri Ashok B. Koli (CIT-DR) Date of Institution of Appeal 10/05/2023 Date of hearing 11/07/2023 Date of pronouncement 11/07/2023 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee-trust is directed against the order of learned Commissioner of Income Tax, (Exemptions), Ahmedabad [in short the ld. CIT(E)] in rejecting the application for approval of assessee-trust under Section 80G(5) of the Income Tax Act, 1961 (in short, the Act) vide order dated 22/03/2023. The assessee has raised following grounds of appeal: “(1) The learned 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 Shri Ojus Trust Vs CIT(E) 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.”

2. Brief facts of the case are that the assessee-trust filed an application for approval of the Trust under Section 80G(5) of the Act in Form 10AB in accordance with Rule 11AA of the Income Tax Rules, 1962, (in short, the Rules) on 21.09.2022. The assessee furnished necessary required details at the time of filing application electronically/online. On receipt of such application, the ld. CIT(E) issued notice dated 12/12/2022 and subsequently on 10/01/2023 for requiring the assessee for filing certain other details/documents. The assessee filed required details vide its reply dated 12.0.01.2023 and on 230.01.2023. However, the ld. CIT(E) rejected the approval by taking a view that the application of assessee for registration under Section 12AB of the Act has been rejected on 21/03/2023. The ld CIT(E) was further of the view that registration under Section 12AB which is prerequisite condition for granting of approval under Section 80G of the Act. Therefore, in absence of valid registration under Section 12AB, the application for approval under Section 80G(5) of the Act is rejected. Further aggrieved, the assessee has filed present appeal before the Tribunal.

3. We have heard the submissions of learned Authorised Representative (ld. AR) of the assessee and the learned Commissioner of Income Tax- Shri Ojus Trust Vs CIT(E) Departmental Representative (ld. CIT-DR) for the revenue. The ld. AR of the assessee submits that the assessee has challenged the rejection of application for registration under Section 12AB, before Tribunal and prayed that he has a good case on merit and is likely to succeed for getting registration under Section 12AB of the Act, if their application is considered afresh. The rejection of application was that the assessee could not furnished audited statement for FY 2021-12. The ld AR for the assessee prayed that grounds of appeal raised in the present appeal may be restored to the file of ld. CIT(E) for granting appropriate approval to the assessee under section 80G(5) after deciding the application for registration under section 12AB.

4. On the other hand, the ld. CIT-DR for the revenue supported the order of ld. CIT(E). The ld. CIT-DR submits that for approval of trust under Section 80G(5) of the Act, registration of 12A/12AA/12AB is precondition and in absence of such registration, no approval under Section 80G(5) of the Act can be granted.

5. We have considered the submissions of both the parties and have gone through the order of ld. CIT(E) carefully. We find that the assessee has also challenged the action of ld CIT(E) in rejecting the application under section12AB, which we have restored back to reconsidering it afresh on submitting required details, vide our order dated 11.07.2023. Therefore, Shri Ojus Trust Vs CIT(E) this this appeal is also restored back to the file of ld. CIT(E) to decide it, after the order on the application under Section 12AB of the Act. Needless to direct that before deciding the application afresh, the ld. CIT(E) shall grant opportunity of hearing including to make further submission to prove the object of assessee-trust and its activities and other requirement in accordance with law. In the result, grounds of assessee’s appeal is allowed for statistical purposes.

6. In the result, this appeal of assessee is allowed for statistical purposes. Order pronounced on 11/07/2023 in open court.