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2017 (8) TMI 1135 - HC - Income TaxEntitlement to a registration u/s 80G(5) - rejection of claim as assessee did not have registration u/s 12A - Assessee is availing exemption u/s 10(23C) - Held that - Respondent/assessee has been granted registration u/s 12A of the Act with effect from 01.04.2008 by the order of the Tribunal. Thus grant of registration under Section 80G(5) of the Act by the impugned order of the Tribunal cannot now be a subject matter of grievance for the Revenue. Also be pointed out that the impugned order of the Tribunal also records the fact that the respondent/assessee would be entitled to be registration under Section 80G(5) of the Act as its income would fall under Section 10(23C) of the Act. Thus, not includable in total income. Therefore, satisfies the pre-condition as stipulated in subsection (5) of Section 80G of the Act for grant of Registration. We find that the same has not been admitted as substantial question of law. Therefore, this would be one more reason why appeal filed by the appellant/Revenue must fail. - Decided in favour of assessee.
Issues:
Challenge to order passed by Income Tax Appellate Tribunal under Section 260A of the Income Tax Act, 1961. Interpretation of Sections 80G(5), 12A, and 10(23C) of the Act. Analysis: 1. Substantial Questions of Law: The appeal challenged the ITAT's order directing the Commissioner to grant approval under Section 80G(5) of the Act to the assessee. The primary issue was whether the ITAT was correct in law to grant approval without the assessee furnishing details or evidence of registration under Section 12AA of the Act. 2. Registration under Section 80G(5): The impugned order allowed the assessee's appeal, confirming their entitlement to registration under Section 80G(5) of the Act. The Commissioner had initially rejected the application citing the lack of registration under Section 12A as a pre-condition. However, the respondent had obtained registration under Section 12A, which was upheld by the High Court, rendering the registration under Section 80G(5) valid. 3. Judicial Precedent: The High Court had previously dismissed the Revenue's appeal against the order granting registration under Section 12A to the respondent. The Revenue's challenge to this dismissal in the Supreme Court was pending. However, since no stay was issued on the High Court's order, the registration under Section 80G(5) could not be contested, leading to the appeal's dismissal. 4. Entitlement to Registration: The Tribunal also noted that the respondent would qualify for registration under Section 80G(5) as its income fell under Section 10(23C) of the Act, making it non-includable in total income. This further supported the dismissal of the Revenue's appeal, as the conditions for registration were met by the respondent. 5. Final Decision: Ultimately, the High Court dismissed the appeal, ruling in favor of the respondent/assessee and against the appellant/Revenue. The court highlighted that the substantial questions of law raised in the appeal had to be answered in the affirmative, leading to the rejection of the Revenue's claims. No costs were awarded in the final order. This detailed analysis of the judgment outlines the key legal issues, interpretations of relevant sections of the Income Tax Act, and the court's reasoning behind dismissing the appeal and upholding the registration under Section 80G(5) for the respondent/assessee.
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