2016 (8) TMI 599 - AT - Income Tax

Grant of recognition u/s 80G denied - assessee society is not maintaining the addresses of the donors - Held that - The assessee society again applied for recognition u/s 80G of the Act in form no.10G dated 20.12.2011 filed on 1.2.2012. The Ld. Commissioner after considering the detailed submissions filed by the assessee, he has pointed out that in the Memorandum of Association of assessee society, winding up clause was missing. We find that this is not material to grant recognition u/s 80G of the Act. So far as the accumulation of income is concerned, we find that there is no accumulation, therefore, this objection is not correct. We find that the Ld. Commissioner rightly denied the recognition u/s 80G of the Act on the ground that the assessee society is not maintaining the addresses of the donors. Before us, the Ld. Counsel for the assessee has filed all the details of the donors. In view of the above, we find that it is appropriate to remit the matter back to the A.O. to consider the details of the donors, to pass an order de-novo, in accordance with law after being given a reasonable opportunity of being heard. In view of the above, we set aside the order passed by the Ld. Commissioner and direct him to consider the details filed by the assessee and pass orders in accordance with law. - Decided in favour of assessee for statistical purposes..

Summary

Issues:
1. Rejection of recognition u/s 80G of the Income Tax Act by the Commissioner
2. Appeal filed by the assessee challenging the order of the Commissioner
3. Consideration of the details of donors by the Tribunal

Analysis:
The appeal was filed against the order of the Commissioner rejecting the recognition u/s 80G of the Income Tax Act. The assessee, a charitable organization, had previously been granted registration u/s 12AA and recognition u/s 80G. The Commissioner rejected the renewal of recognition u/s 80G citing reasons such as the absence of a winding-up clause in the Memorandum of Association, accumulation of income not in compliance with the Act, and failure to maintain donor addresses for certain financial years. The Tribunal noted that the absence of a winding-up clause was not crucial for granting recognition u/s 80G. Regarding the accumulation of income, the Tribunal found no such accumulation, thus dismissing this objection. However, the failure to maintain donor addresses was acknowledged as a valid ground for denial. The Tribunal allowed the appeal, remitting the matter back to the Assessing Officer (A.O.) for a fresh consideration based on the details of the donors provided by the assessee.

The Tribunal emphasized that the A.O. should pass a de-novo order after considering the donor details and providing a reasonable opportunity for the assessee to be heard. Consequently, the Tribunal set aside the Commissioner's order and directed a reevaluation based on the information submitted by the assessee. The appeal was allowed for statistical purposes, indicating a favorable outcome for the assessee in terms of the recognition u/s 80G of the Act. This detailed analysis showcases the Tribunal's thorough examination of the issues raised, the legal provisions involved, and the specific grounds on which the appeal was allowed, ensuring a fair and just decision in accordance with the law.