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TMI Blog2024 (1) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner of Income-tax (Exemption) has erred in rejecting the application for grant of approval u/s 80G(5) of the Income-tax Act, 1991 and also erred in cancelling the provisional approval granted by CPC u/s. 80G(5) of the Act. 3) The impugned order is bad in law and on facts. 4) The appellant reserves the right to add, alter or omit all or any of the grounds of appeal in the interest of justice. Grounds of Appeal raised by the assessee in ITA No. 312/RPR/2023 1) In the facts and circumstances of the case and in law the Id. Commissioner of Income-tax (Exemption) has erred in rejecting the application for registration u/s 12AB of the of the Income-tax Act, 1961 and also erred in cancelling the provisional registration granted by CPC u/s 12AB of the Act. 2) The impugned order is bad in law and on facts. 3) The appellant reserves the right to add, alter or omit all or any of the grounds of appeal in the interest of justice. 3. At the outset, Ld. AR of the assessee has requested to withdraw appeal in ITA no. 93/RPR/2023, wherein the assessee has challenged the order of registration/ approval/ rejection or cancellation by Ld. CIT(E), Bhopal while dealing with the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.1TBA/EXM/F/EXM45/2022-23/ 1049976056(1)dated 21/02/2023. 7. However, while preparing paper book for submission before the Hon'ble Income Tax Appellate Tribunal fixed for hearing on 12/09/2023, the applicant got to know about the common order having separate DIN numbers. 8. Applicant, on being so advised, filing the present separate appeal against order rejecting registration u/s. 12A with prayer for condonation of delay considering the peculiar facts and circumstances of the case. The mistake was bona fide and unintentional. The Appellant sincerely desired to challenge both the orders. 9. That as per applicant's humble understanding there are fair chances of substantial relief in its case and the balance of convenience is in its favour. 10. That in view of above facts and circumstances it is humbly prayed that the Hon'ble Tribunal may be pleased to condone the delay of 173 days and admit the appeal for adjudication in the interest of justice. 11. An affidavit in support of application is being filed. 5. According to the aforesaid application along affidavit, the contention of the assessee is that it was unaware of the separate cancellation order of registra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 80G(5) of the Act. 7. The application for registration u/s. 12AA was rejected on the ground that no charitable activities were conducted and merely some events were organized. According to him the activities conducted are not as per objects of the trust. Income from motivation program participation fee received is commercial in nature and receipts are more than 20% of total income. 8. Action of Id. CIT(E) is not justified and contrary to provisions of sec. 12AA of the Act, which prescribes only three conditions for registration. a) Satisfaction about objects of the trust or institution, b) Satisfaction genuineness of the activities of the trust or institution c) Satisfaction about compliance of requirements under any other law. 9. The Id. CIT(E) did not dispute genuineness of the society nor did he dispute any deviation in compliance of requirements of any other law. There is no averment of violation of provisions of sec. 13. 10. The only objection is that the activities carried out are not as per various objectives and not fall under the category of charitable activities. 11. The activities carried out during the preceding three years are strictly as per obje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration u/s. 12AB of the Income Tax Act, 1961 was uncalled for on the basis of activities of the assessee society which are not on commercial basis but for charitable purposes. 8. Ld. CIT DR on the other hand vehemently supported the orders of CIT(E), Bhopal, has submitted that since the assessee society was involved in commercial activities, who had unable to substantiate that they have conducted or carried out any charitable activities. It is, therefore, the prayer that the order of LD. CIT(E) wherein she has categorically explained the reasons for rejection of the application of the assessee should be sustained. 9. We have considered the rival submissions, perused the material available on record and the case laws submitted by the assessee society in support of their contentions. The issue in the present case regarding rejection of the application of the assessee for registration u/s. 12AB, as have been dealt with by the coordinate bench of the ITAT, Raipur in the case of Shri Agrasen Jan Kalyan Trust v. Commissioner of Income-tax (Exemption) In ITA no. IT APPEAL NO. 334 (RPR) OF 2016 vide order dated July, 4, 2023 wherein the issue has been discussed and principle of law as l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting registration u/s. 12AA on 25-3-2021 vide order ITBA/EXM/S/12AA/2020-21/1031751676(1). In such circumstances, respectfully following the judgment in the case of Ananda (supra), we are of the considered opinion that the rejection of application for registration u/s. 12AA of the Act by Ld CIT(E) was an erroneous application of law, thus, cannot sustain, accordingly we quash the same and direct to grant registration to the assessee as per law. 11. In terms of the aforesaid observations respectfully following the judgment in the case of Ananda (supra), in absence of any contrary decision, fact, or submission by the revenue, we are of the considered view that the rejection of the request of registration u/s. 12AB of the Act in the present case was unjustified, uncalled for, and against the settled principle of law. Consequently, we are inclined to set aside the order of Ld. CIT(E), Bhopal, vide DIN No. ITBA/EXM/F/EXM45/2022-23/1049976056(1) dated 21.02.2023 and direct to grant registration u/s. 12AB in accordance with law. 12. In the result, the present appeal of the assessee is allowed, in terms of our observations hereinabove. Order pronounced in the open court on 22/01/2024.< ..... X X X X Extracts X X X X X X X X Extracts X X X X
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