2017 (8) TMI 41 - HC - Income Tax

Eligibility to registration as a charitable institution under Section 12A - application rejected on the ground that the documents which were required to be submitted by the Assessee not submitted - Held that - The appeal filed by the Assessee against the said rejection before the ITAT, the Assessee was able to produce the documents to show that its income was in fact exempt under Section 10(23C)(iiiae). This was evident from the assessment order passed in the case of Assessee for AY 2013-14. Further, the Assessee had been allowed exemption under Section 11 of the Act by the ITAT in AY 1990-91 as well. It was noted by the ITAT that the Assessee had filed all the information before the ITO, Headquarters (Exemptions) as was evident from the paper book filed by the Assessee. There was no need for the ITAT to have remanded the matter to the Director of Income Tax (Exemptions) for a fresh determination. There was sufficient material to justify grant of registration to the Assessee under Section 12A of the Act - Decided against revenue

Summary

Issues:
1. Appeal against rejection of application for registration as a charitable institution under Section 12A of the Income Tax Act, 1961.

Analysis:
The High Court heard an appeal by the Revenue against an order passed by the ITAT regarding the registration of the Respondent/Assessee as a charitable institution under Section 12A of the Income Tax Act, 1961. The Revenue questioned the ITAT's decision to grant registration to the Assessee after the Director of Income Tax (Exemption) initially rejected the application due to missing documents. The Assessee had claimed exemption under Section 10(23C)(iiiae) and was asked to provide a copy of registration under Section 10(23C) which was not submitted initially.

Upon appeal, the Assessee was able to present the necessary documents to prove its eligibility for exemption under Section 10(23C)(iiiae). The ITAT observed that the Assessee had previously been granted exemption under Section 11 of the Act for AY 1990-91. The ITAT found that the Assessee had provided all required information to the ITO, Headquarters (Exemptions) as evidenced by the submitted paper book.

The High Court determined that the ITAT's decision to grant registration to the Assessee under Section 12A was justified based on the available evidence and documents. The Court concluded that there was no need to remand the matter to the Director of Income Tax (Exemptions) for further review as sufficient material was already provided to support the registration. Consequently, the High Court dismissed the appeal by the Revenue, stating that no substantial question of law arose for consideration in this case.