2015 (3) TMI 218 - AT - Income Tax

Application for recognition u/s 80G - Receipt of donations - Registration u/s 12A - Held that - assessee is a charitable organization and is carrying on charitable activities and it has been allegedly granted registration u/s 12A of the Act, as far back as 1988-89. The subsequent events such as the assessee filing returns as charitable organization before the DIT(E) and the revenue department accepting such returns, goes to prove that the registration u/s 12A is in force. Even the order of the DIT(E) did not raise any objection as to the furnishing or non-furnishing copy of the registration u/s 12A of the Act. Pursuant to the direction of the Tribunal that the activities of the assessee of agitating for cause of the trade and commerce are not in violation of the provisions of section 80G(5)(vi) of the Act, we find that the DIT(E) has granted recognition u/s 80G of the Act to the assessee. We find that all these circumstances go to prove the contention of the assessee that registration u/s 12A in favour of the assessee is in force. Merely because the copy of the registration u/s 12A is not available with the assessee and the revenue department is not able to trace the file and the copy of the registration, it cannot be said that the assessee is not eligible for recognition u/s 80G of the Act. Matter remanded back - Decided in favour of assesse.

Issues:
1. Rejection of application for recognition u/s 80G of the IT Act.
2. Requirement of filing a copy of registration granted u/s 12A for approval u/s 80G.
3. Appeal against the order of the DIT(E) rejecting the application.
4. Consideration of evidence and past approvals for renewal of recognition u/s 80G.

Analysis:
1. The case involved an appeal against the rejection of the assessee's application for recognition under section 80G of the Income Tax Act by the DIT(Exemptions), Hyderabad.
2. The assessee, an association engaged in charitable activities, had applied for renewal of recognition u/s 80G, which was rejected due to the absence of a copy of the registration granted u/s 12A of the Act.
3. The Tribunal had earlier held that the assessee was entitled to approval u/s 80G for donations received until a specified date and subsequently granted recognition for a limited period. The DIT(E) rejected the renewal application citing the absence of the mandatory copy of the registration u/s 12A.
4. During the appeal, the assessee presented evidence including communication from the CIT and financial documents to demonstrate compliance with charitable regulations and past approvals for recognition u/s 80G.
5. The DIT(E) contended that the application was incomplete without the copy of the registration u/s 12A, emphasizing the mandatory requirement under the law.
6. The Tribunal, after considering the submissions and evidence, found that the assessee had been operating as a charitable organization since 1988-89 and had filed returns as such, indicating the registration u/s 12A was in force.
7. The Tribunal noted that past approvals and acceptance of returns by the revenue department supported the contention that the registration u/s 12A was valid, despite the unavailability of the physical copy.
8. Consequently, the Tribunal remitted the issue back to the DIT(E) for reevaluation based on the available evidence, ensuring a fair hearing for the assessee.
9. The appeal was allowed for statistical purposes, emphasizing the need for a comprehensive review of the application for recognition u/s 80G in light of the presented evidence.

This detailed analysis of the judgment highlights the key issues, arguments, and the Tribunal's decision regarding the rejection of the application for recognition u/s 80G of the IT Act.

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