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2021 (10) TMI 308 - AT - Income TaxGrant of recognition u/s 80G(5)(vi) denied - reason given by CIT(E) is that in absence of any charitable activities, the genuineness of the charitable activity could not be examined - HELD THAT:- The assessee trust was granted registration u/s 12AA of the I.T.Act vide order of CIT(E) dated 16.12.2019. Department has not doubted the charitable nature of objects of the assessee for which it is established. The grant of approval / recognition u/s 80G of the I.T.Act, acts as catalyst and results in donations which in turn results in charitable activities - grant of recognition u/s 80G of the I.T.Act may be condition precedent for achieving the objects for which the trust is established. On identical factual situation, in the case of M/s.Chiranthana v. CIT(E) [2020 (1) TMI 1332 - ITAT BANGALORE] had held that rejection of assessee’s application for the sole reason that no activities has been started by the assessee is not correct and not mandated as per the provisions of the Act. The Co-ordinate Bench of the Tribunal after holding that the reasons stated by the CIT(E) cannot be a ground to deny the benefit of recognition u/s 80G(5)(vi) of the I.T.Act, restored the matter to the CIT(E) for de novo consideration. Thus in the present we restore the case to the files of CIT(E). The CIT(E) is directed to consider the assessee’s application for recognition u/s 80G(5)(vi) of the I.T.Act afresh. The CIT(E) shall afford a reasonable opportunity of hearing to the assessee and shall take a decision in accordance with law. Assessee ground raised is allowed for statistical purposes.
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