2014 (4) TMI 830 - HC - Income Tax

Matter remanded to Commission Exemption u/s 80G(5) of the Act - Held that - The Tribunal has mainly remanded the question of granting recognition u/s 80G (5) of the Act for fresh consideration of the Commissioner - Being a mere remand, the appeal cannot be entertained but, the Commissioner shall take a fresh decision, as provided by the Tribunal, after giving opportunity to the assessee Decided against Revenue.

Summary

Issues:
1. Interpretation of provisions related to exemption under Section 80G of the Income-tax Act, 1961.
2. Application of principles for registration under Section 12AA of the Act in recognizing donations.

Analysis:
1. The High Court was presented with the issue of whether the Income Tax Appellate Tribunal (ITAT) was justified in its conclusion regarding the examination of the object of a trust and the application of funds at the time of granting approval for exemption under Section 80G of the Income-tax Act, 1961. The Tribunal remanded the question of granting recognition under Section 80G(5) for fresh consideration by the Commissioner. The Tribunal emphasized the need to examine the object of the trust and the application of funds, citing a case from the Hon'ble Punjab & Haryana High Court. The High Court upheld the Tribunal's decision for remand, directing the assesse-trust to provide complete details for reconsideration of the exemption application by the Commissioner. The Court dismissed the Tax Appeal as it was a mere remand, clarifying that the Commissioner should make a fresh decision based on applicable law after giving the assessee an opportunity.

2. The second issue involved the application of principles for allowing registration under Section 12AA of the Act in the context of recognizing donations. The Tribunal's decision was not entertained by the High Court, and the Court did not delve into the specific case cited by the Tribunal. The Court clarified that the Commissioner should make a fresh decision on this issue, considering the relevant law and providing the assessee with an opportunity. Ultimately, the Tax Appeal was dismissed by the High Court.

In conclusion, the High Court upheld the Tribunal's decision to remand the question of granting recognition under Section 80G(5) for fresh consideration by the Commissioner, emphasizing the examination of the trust's object and fund application. The Court also directed the Commissioner to make a fresh decision on the application of principles for registration under Section 12AA, ensuring compliance with the law and providing the assessee with an opportunity.