9911796707
TMI Blog2025 (4) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... 024 respectively, passed by learned Commissioner of Income-Tax (Exemption), Bhopal ["CIT(E)"] by which the assessee's applications for grant of final registration u/s 12AB / final approval u/s 80G(5) of Income-tax Act, 1961 ["the act"] have been rejected and the provisional registration u/s 12AB / provisional approval u/s 80G(5) granted earlier have also been cancelled. 2. The background facts leading to present appeal are such that the assessee-company incorporated u/s 8 of the Companies Act, 2013 claiming to be for charitable purpose, applied to CPC for grant of provisional registration u/s 12AB and provisional approval u/s 80G, which were granted by CPC. Subsequently, the assessee applied to CIT(E) for grant of final registration u/s 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sabled, women and poor and economically weaker sections of the society, and to apply all the surplus derived, if any, from above activities for the purpose and objects of the foundation. 3. To sell and market the various products like plants, garments, textile, handicrafts etc. developed by disabled, women, youths and poor and weaker sections of the society through establishing, maintaining shops or other establishments of such places permitted which will generate employment and provide suitable job opportunities for the above deprived persons and to apply all the surplus derived, if any, from above activities for the purpose and objects of the foundation." -- The above referred objects clearly show that the intention of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to photographs of actual activities undertaken by assessee filed in Paper-Book at Page 95 onwards to show that the assessee has done activities of holding educational camps, health camps, nature conservation, women empowerment, etc. which are fully charitable. (iii) Alternatively, Ld. AR submitted that even if the object Nos. 2 & 3 are interpretated as enabling the assessee to carry out commercial activity, section 2(15) of the Act defining the term 'charitable purpose' itself allows commercial activities upto a ceiling limit of 20%. Further, section 11(4A) of the Act also grants exemption to a body involved in commerce or business subject to fulfillment of certain requirements. Therefore, the commercial element, even if there be in any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on has been drawn. Admittedly, the CIT(E) has analysed object No. 2 & 3 of assessee and observed "The above referred objects clearly show that the intention of the assessee is to carry out various commercial activities and also to engage in trading of various products as mentioned in the objects of the assessee". On this limited basis, the CIT(E) has denied registration to assessee. Here, we find a strong merit in the contention raised by Ld. AR that proviso to section 2(15) of the Act defining 'charitable purpose' itself allows commerciality in the activities of assessee but upto a ceiling limit of 20%. Further, section 11(4A) of the Act grants exemption to commercial or business activity on fulfillment of certain requirements. It is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee on the footing that by means of object No. 2 & 3, the assessee had intention to carry out commercial activity. Consequently, we direct the CIT(E) to grant registration u/s 12AB to assessee as applied. The assessee succeeds in this appeal. ITA No. 399/Ind/2024 - relating to approval u/s 80G: 8. Ld. AR for assessee carried us to the impugned order. He would demonstrate that the CIT(E) can be said to have denied approval u/s 80G to assessee for two-fold reasons, (i) the registration u/s 12AB has been denied as a consequence of which approval u/s 80G is also not available, and (ii) the assessee was granted provisional approval u/s 80G vide order dated 09.11.2022 and thereafter the assessee was required to apply for final approval within 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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