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2022 (3) TMI 1279 - AT - Income TaxApproval u/ 80 G (5) (vi) - approval denied as application was pre-mature as the assessee had not yet been granted registration u/s 12A - assessee again filed an application for approval u/s 80G which was also rejected on the ground that the trust was overtly religious - HELD THAT:- The assessee trust continues to enjoy benefit of registration u/s 12AA of the Act and the Department has not initiated any action to cancel the said registration. Thus, for all practical purposes, the assessee trust continues to enjoy the benefit of registration u/s 12AA of the Act, as its activities are charitable in nature. No doubt has been raised about the charitable objects of the assessee trust. A perusal of the impugned order of the Ld. CIT(E) further shows that even the Ld. CIT(E) has not doubted the charitable nature of the objects of the assessee trust. Also there is no averment or allegation that the assessee trust does not fulfill the conditions as required u/s 80G(5)(vi) CIT(E) was not correct in rejecting the assessee’s application for approval. Further, the Ld. CIT(E)’s observation that the assessee did not prefer any appeal against the earlier orders rejecting the approval also does not hold good as the choice is left open to the assessee whether to file an appeal against the rejection of application or to file a fresh application. The case laws, as have been relied upon by the Ld. CIT DR, are also of no aid to the Department in, as much as, these case laws are on an entirely different footing and are not relevant in the present set of facts - CIT(E) was patently wrong in rejecting the assessee’s application for approval u/s 80 G (5)(vi) - we direct the Ld. CIT(E) to grant approval to the assessee trust u/s 80G - Appeal of assessee allowed.
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