2015 (11) TMI 1384 - AT - Income Tax

Denial of approval under section 80G(5)(vi) - application in form No.10G for approval under section 80G(5)(vi) of the Act was not accompanied by a copy of registration granted under section 12AA of the Act, as per sub-rule (2) of rule 11AA of the Rules - Held that - In the instant case, undisputedly the assessee has filed application for grant of approval under section 80G(5)(vi) of the Act without accompanying the copy of registration granted under section 12A of the Act. During the course of hearing, the ld. counsel for the assessee has admitted that the assessee has filed both the applications simultaneously and contended that the ld. Commissioner of Income-tax ought to have waited for disposal of the application for grant of registration under section 12A of the Act instead of dismissing the application for grant of approval under section 80G(5)(vi) of the Act. We do not find any force in this argument of the ld. counsel for the assessee, as the assessee was mandatorily required to file the copy of registration under section 12A of the Act along with the application for approval under section 80G(5)(vi) of the Act. If the application is not accompanied with the registration certificate under section 12A of the Act, the ld. Commissioner of Income-tax is within its jurisdiction to dismiss or reject the application for grant of approval under section 80G(5)(vi) of the Act at the threshold, as the requisite condition is not fulfilled. The ld. Commissioner of Income-tax is not under any obligation to wait for disposal of the application for registration under section 12A of the Act. The right course is to first of all apply for grant of registration under section 12A of the Act and after obtaining the same, one can apply for grant of approval under section 80G(5)(vi) of the Act. The approach of filing both the applications simultaneously is not proper and in that eventuality the ld. Commissioner of Income-tax is justified in rejecting the application for grant of approval under section 80G(5)(vi) for want of registration under section 12A - Decided against assessee.

Summary

Issues involved:
- Delay in filing the appeal
- Denial of approval under section 80G(5)(vi) of the Income-tax Act
- Requirement of accompanying copy of registration under section 12A of the Act with the application for approval under section 80G(5)(vi) of the Act

The judgment deals with an appeal filed by the assessee against the order of the ld. Commissioner of Income-tax denying approval under section 80G(5)(vi) of the Income-tax Act. The appeal was filed late by 27 days without any application for condonation of delay, leading to the dismissal of the appeal on the grounds of being barred by limitation. However, the appeal was adjudicated on merit as well. The main contention raised was that the ld. Commissioner dismissed the application for approval under section 80G(5)(vi) without waiting for the result of the application for registration under section 12AA. The assessee argued that both applications were moved simultaneously, but the ld. Commissioner's actions were not in accordance with the law. The ld. D.R., on the other hand, highlighted the requirement of accompanying the application for approval under section 80G(5)(vi) with a copy of registration granted under section 12A of the Act.

Upon examination, the Tribunal found that the application for approval under section 80G(5)(vi) of the Act must be accompanied by the copy of registration granted under section 12A of the Act, as per rule 11AA of the Rules. Filing the copy of registration is a condition precedent for consideration of the approval request. The Tribunal noted that the assessee had filed the application without the required registration certificate, leading to the dismissal of the application by the ld. Commissioner. The Tribunal emphasized that the ld. Commissioner was not obligated to wait for the registration application to be processed before dismissing the approval application. The proper procedure is to first obtain registration under section 12A and then apply for approval under section 80G(5)(vi). Filing both applications simultaneously is deemed improper, and the ld. Commissioner's dismissal of the approval application was justified in the absence of the necessary registration certificate.

In conclusion, the Tribunal upheld the order of the ld. Commissioner of Income-tax, confirming the dismissal of the appeal. The Tribunal emphasized the mandatory requirement of submitting the copy of registration under section 12A with the application for approval under section 80G(5)(vi) and highlighted that the ld. Commissioner acted in accordance with the law by rejecting the application due to non-compliance with this requirement. The Tribunal found no fault in the ld. Commissioner's decision and therefore dismissed the appeal of the assessee.

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