PARUL UNIVERSITY ALUMNI ASSOCIATION,VADODARA vs. THE COMMISSIONER OF INCOME TAX-EXEMPTION, AHMEDABAD

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ITA 69/AHD/2024Status: DisposedITAT Ahmedabad14 May 2024Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the rejection of 80G registration and restored the matter to the Commissioner of Income Tax (Exemption) for fresh consideration. This was done in the interest of natural justice and to allow the Commissioner to examine the Trust's activities.

What were the facts?

The Assessee's application for registration under section 80G of the Income Tax Act was rejected because registration under section 12AB had not been granted. A co-ordinate bench had previously set aside the rejection of 12AB registration, remanding it for fresh examination.

What were the issues?

Whether the rejection of 80G registration is valid when the prerequisite 12AB registration is under review. The primary issue is the procedural correctness of rejecting 80G based on the status of 12AB registration.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12AB,Section 11,Section 13

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH

Parul University Alumni The Commissioner of Association Income Tax Limda, Waghodiya, Vs (Exemption), Vadodara-391760 Ahmedabad PAN: AAETP9195M (Respondent) (Appellant) Assessee Represented: Shri Samir Parikh, A.R. Revenue Represented: Shri Hishikes Hement Patki, Sr.D.R. Date of hearing : 08-05-2024 Date of pronouncement : 14-05-2024 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the Assessee as against the rejection of Registration under section 80G of the Income Tax Act 1961 (hereinafter referred to as ‘the Act’) passed by the Commissioner of Income Tax (Exemption) on the ground that Registration under section 12AB was not granted to the assessee Trust.

2.

Ld. Counsel brought to our notice that the Co-ordinate Bench of this Tribunal in its own case of Parul University Alumni Association in vide order dated 24.04.2024, set aside the I.T.A No. 69/Ahd/2024 Page No 2 Parul University Alumni Association vs. CIT(E) rejection of Registration under section 12AB of the Act by observing as follows: “15. In our considered view, looking into the objects of the trust, it cannot be held that the assessee/applicant trust has been formed only for the benefit of a particular community only. Further, we also agree with the Counsel for the assessee that this aspect should be considered at the time of grant of exemption under Section 11 of the Act and the provisions of Section 13 should not be invoked at time of grant of registration under Section 12AA of the Act. In the result, the matter is being restored to the file of CIT (Exemptions) to examine the activities carried out the trust (since we observe that the trust has been recently formed/registered) and to carry out the requisite analysis whether the trust is engaged in carrying out genuine activities, so as to be eligible for grant of registration under Section 12AA of the Act.”

2.1. Thus the Ld. Counsel pleaded to set aside the present appeal rejecting the Registration under section 80G of the Act.

3.

Ld. D.R. appearing for the Revenue has no serious objection in setting aside the matter back to the file of Ld. CIT(E) for considering the Registration afresh.

4.

We have given our thoughtful consideration and perused the materials available on record and the order passed by the Co- ordinate Bench of the Tribunal setting aside the case to the file of Ld. CIT(E). In the Interest of Principal of Natural Justice, we deem it fit to set aside the matter back to the file of Ld. CIT(E) to consider the activities of the assessee Trust and grant Registration under section 80G of the Act in accordance with the provisions of law. Page No 3 Parul University Alumni Association vs. CIT(E)

5.

In the result, the appeal filed by the Assessee is allowed for statistical purpose.

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