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TMI Blog2024 (12) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... rectness of judgment & order dated 9-6-2022 passed by the Income Tax Appellate Tribunal, Raipur Bench, Raipur (for short, 'the ITAT') in ITA No. 31/RPR/ 2019, by which the appeal filed by the assessee / respondent herein has been allowed by the ITAT with a direction to the appellant herein to grant approval to the assessee under Section 80G (5) of the IT Act. 2. The appeal was admitted for hearing on 1-3-2023 by formulating the following substantial question of law: - "Whether in the attending facts and circumstances of the case, the Income Tax Appellate Tribunal (ITAT) was correct in holding that the Commissioner of Income Tax (E) was not justified in rejecting the application of the respondent for grant of benefit of exemption under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rant approval to the assessee under Section 80G of the IT Act and thereby allowed the appeal which is sought to be challenged by way of this appeal. 5. Mr. Vijay Chawla, Advocate, appearing on behalf of Mr. Amit Chaudhari, learned Standing Counsel for the Income Tax Department / Revenue, would submit that the ITAT is absolutely unjustified in granting the appeal and directing the CIT(E) to grant approval to the assessee under Section 80G of the IT Act by recording a finding perverse to the record. 6. Ms. Smiti Sharma, learned counsel appearing for the assessee / respondent herein, would submit that since the assessee has already been granted the application under Section 12AA of the IT Act, which is operational at present, the learned ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the IT Act cannot be denied, and observed as under:- "18. It is also required to be noted that once the registration under section 12A (a) of the Act is granted, the grant of benefit cannot be denied. The Income-tax Officer was not justified in refusing the benefits which would otherwise accrue under the registration. If there was no registration, as contemplated under section 12A (a) read with rule 17A, the Revenue would have been justified in making a submission that the benefit cannot be granted, but where the application for registration is submitted and the registration has been granted, the benefit cannot be denied on the ground that the scheme is not for the benefit of the public at large." 11. The principle of law laid down by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid case, the same has attained finality. Question 'B', therefore, is to meet the same fate as Question 'A' as this Court had declined to grant leave in respect of Question 'A' on the ground that the Revenue did not challenge the correctness of the decision in Hiralal Bhagwati1. It appears that the fact, that Question 'B' was also covered by the aforementioned judgment, was not brought to the notice of Their Lordships and, therefore, leave granted was restricted to Question 'B'." 12. In view of the decision rendered by the Gujarat High Court in Hiralal Bhagwati (supra) approved by the Supreme Court in Surat City Gymkhana's case (supra), we have no hesitation to hold that since the respondent assessee stands registered as charitable instit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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