2013 (9) TMI 1291 - AT - Income Tax

Summary

Issues Involved: Appeal against rejection of registration under section 12AA and approval under section 80G of the Income Tax Act, 1961.

Registration under Section 12AA:
The assessee trust applied for registration under section 12AA and Section 80G on 05.02.2010, which was rejected by the ld. CIT on 26.08.2010. The ITAT set aside the issue for fresh adjudication by order dated 12.01.2011. The ld. CIT passed an order on 23.01.2012 rejecting the applications. The assessee contended that as no adverse order was passed within six months from the ITAT order, it was entitled to registration under section 12AA. The ITAT found that the order was passed beyond the stipulated period of six months, citing legal provisions and a jurisdictional High Court decision supporting deemed registration in such cases. Consequently, the ITAT set aside the order of the ld. CIT and granted deemed registration to the assessee.

Approval under Section 80G:
Similarly, the application for approval under section 80G was also rejected by the ld. CIT on 23.01.2012. The ITAT, considering the same arguments and legal provisions as in the case of registration under section 12AA, set aside the order of the ld. CIT and granted deemed approval to the assessee.

Conclusion:
The ITAT allowed the appeals filed by the assessee, setting aside the orders of the ld. CIT and granting deemed registration under section 12AA and approval under section 80G. The decision was based on the failure to pass the orders within the stipulated time frame as per legal provisions and supported by relevant case law.