2019 (4) TMI 1435 - AT - Income Tax

Approval u/s 80G(5)(vi) - registration u/s 12A granted to assessee recently - request for approval under section 80G(5)(vi) is treated as premature - HELD THAT - The issue is covered by the Order in the case of Bharat Bhushan Jain Charitable Trust vs. CIT (Exemptions), New Delhi 2019 (2) TMI 712 - ITAT DELHI . In the present case also assessee has been granting registration under section 12A , therefore, Ld. CIT(E) was satisfied about the charitable activities carried out by the assessee and the objects of the assessee are charitable in nature. Therefore, assessee is entitled for approval under section 80G(5) - direct the Ld. CIT(E) to grant approval/exemption to the assessee under section 80G(5), from the date of application. - Decided in favour of assessee

Summary

Issues:
1. Appeal against the Order of the Ld. CIT (Exemptions) under section 80G(5)(vi) of the Income Tax Act, 1961.
2. Premature dismissal of application for approval under section 80G(5)(vi) despite registration under section 12A.

Analysis:
Issue 1: The appeal was directed against the Order of the Ld. CIT (Exemptions) under section 80G(5)(vi) of the Income Tax Act, 1961. The Ld. CIT(E) noted that the assessee had filed applications for approval under section 80G(5)(vi) and section 12AA of the I.T. Act, 1961. The application under section 80G(5)(vi) was considered premature and dismissed.

Issue 2: The Assessee argued that a similar situation was addressed in the case of Bharat Bhushan Jain Charitable Trust vs. CIT (Exemptions), where the Tribunal found the application premature but granted approval under section 80G(5). It was highlighted that the Commissioner (Exemptions) did not dispute the charitable activities carried out by the assessee or the compliance with section 80G(5) conditions. The Tribunal set aside the impugned order and directed approval/exemption under section 80G(5).

The Revenue did not dispute the facts but maintained that the application was premature. The Tribunal, considering the circumstances and the registration under section 12A, concluded that the assessee was entitled to approval under section 80G(5) as the charitable activities were in compliance with the Act. The impugned order was set aside, and the Ld. CIT(E) was directed to grant approval/exemption under section 80G(5) from the date of application.

In conclusion, the appeal of the Assessee was allowed based on the Tribunal's findings and the satisfaction of conditions for approval under section 80G(5) of the Income Tax Act, 1961. The impugned order was overturned, and the Ld. CIT(E) was instructed to grant approval to the Assessee.