TMI Blog2018 (11) TMI 1817X X X X Extracts X X X X X X X X Extracts X X X X ..... d u/s 12A(a) of the Act w.e.f. 01.04.2008, vide order dated 22.09.2008, passed by the ld. CIT, continues hitherto. As such, the ld. CIT(E) has erred in rejecting the assessees application u/s 80G(5) of the Act. The order under appeal is, therefore, reversed. The application filed by the assessee u/s 80G is allowed. - ITA No. 666/LKW/2017 - - - Dated:- 16-11-2018 - Shri A.D Jain, Vice President And Shri T.S. Kapoor, Accountant Member For Appellant: Shri Jagdish, Advocate ; For Respondent: Shri C.K. Singh, DR, Advocate JUDGMENT A.D. Jain, This appeal is preferred by the assessee against the order of the CIT(Exemptions), dated 25.08.2017, denying the registration u/s 80G(5)(vi) of the Income Tax Act, 1961. 2. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017 FURNISHED BY THE APPELLANT SOCIETY DURING THE COURSE OF HEARING OF THE CASE. 7. BECAUSE THE LD. CIT (EXEMPTIONS) ACTED ARBITRARILY IN REJECTING THE APPLICATION FOR APPROVAL UNDER SECTION 80G OF THE APPELLANT SOCIETY FORMED FOR THE CHARITABLE PURPOSE WHICH CARRIES OUT ITS CHARITABLE ACTIVITIES GENUINELY AS PER THE BYE LAWS UNDER WHICH IT WAS FORMED. 8. BECAUSE ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT (EXEMPTIONS) HAS ERRED IN NOT PROVIDING THE SUFFICIENT REASONABLE OPPORTUNITY OF BEING HEARD TO THE APPELLANT AND WHICH IS AGAINST THE PRINCIPLE OF NATURAL JUSTICE. ' 9. BECAUSE ON FACTS OF THE CASE AND IN LAW THE LD. CIT (EXEMPTIONS) HAS ERRED RECORDING THE FINDINGS THAT THE APPELLANT SOCIETY ENGAGED ITSELF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in charitable activities as per its bye laws. 5. The ld. Counsel has further contended that the assessee had placed before him, the complete books of account, bills and vouchers for verification, ITA No. 666/Lkw/2017 but the CIT(Exemptions), instead of examining the books of account, rejected the application for grant of approval u/s 80G(5)(vi) of the Act. In support of his contention, the ld. Counsel for the assessee has also invited our attention to reply (APB-11 to 13) dated 23.08.2017, filed before the ld. CIT(E). It has been submitted that as the registration granted under Section 12A of the Act is continuing to be granted to the assessee, approval under Section 80G cannot be refused to the assessee and the ld. CIT(E) has w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process, wherein the according of registration u/s 12AA of the Act at one end would result in the issuance of approval u/s 80G(5) at the other. Consistent judicial opinion in this regard, however, is otherwise. The issue is, as such, no longer res integra. 6. In Hiralal Bhagwati vs. CIT, 246 ITR 188 (Guj.), while holding that once registration u/s 12AA of the Act was granted, the order rejecting the application u/s 80G(5) of the Act was liable to be quashed, the Honble High Court observed that the registration of a charitable trust u/s 12A of the Act is not an idle or empty formality; that this is apparent from the provisions of Section 12A; that it requires that not only an application should be filed in the prescribed form, setting out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , that while considering the certification of the Institution for the purpose of Section 80G, inquiry should be confined to finding out if the Institution satisfies the prescribed conditions as mentioned in Section 80G; that it is well settled that at the time of granting the application u/s 80G, what is to be examined is whether the trust is registered u/s 12A and the objects of the trust; that so far as the aspect of income is concerned, the same can be very well examined by the Assessing Officer at the time of framing assessment; and that the Authority examining the question whether a trust/Institution is eligible to be certified for the purposes of Section 80G is not to act as an AO. 9. N.N. Desai, (Supra) was followed by the Pune IT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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