2018 (7) TMI 829 - AT - Income Tax

Rejecting the application for registration under section 12A r.w.s. 12AA - applicant has not filed requisite details as well as MoA for verification, so as to establish the nature and genuineness of the activities of the society - Held that - When the applicant is running the school for girls and imparting training to the girls in handicrafts without charging any fee, activities of the societies appear to be are charitable and genuine in nature. Not only this, the Ld. CIT(E) has granted registration as well as approval to the assessee u/s 12AA and Section 80G respectively for AY 2016-17. The Co-ordinate Bench of Tribunal in assessee s own case bearing in the case of The Managing Committee vs. CIT(E) 2017 (9) TMI 1678 - ITAT DELHI directed the Ld.CIT(E) to grant registration u/s 12AA and to accord approval u/s 80G of the Act. We hereby direct the Ld. CIT(E) to grant registration and to accord approval to the applicant u/s 12AA and Section 80G of the Act respectively, on furnishing the requisite details required u/s 12AA of the Act, after providing an opportunity of being heard to the assessee. Consequently, both appeals filed by the Assessee are allowed.

Summary

Issues:
1. Rejection of application for registration under section 12A r.w.s. 12AA of the Income Tax Act, 1961.
2. Rejection of application for grant of approval under section 80G of the Income Tax Act, 1961.

Analysis:
Issue 1:
The Appellant, a Managing Committee, sought to set aside the impugned orders rejecting the application for registration under section 12A r.w.s. 12AA of the Income Tax Act, 1961. The rejection was based on the grounds that the applicant failed to provide requisite details with the original copy of MoA to prove the charitable nature and genuineness of its activities. The Tribunal noted that the society was registered under the Societies of Registration Act and was established to provide education and training to girls of the Muslim Punjabi Community. The Tribunal found that the activities of the society, such as running a school for girls and imparting training without charging fees, were indeed charitable and genuine. Additionally, previous orders and directions from the Tribunal and the Ld.CIT(E) supported granting registration and approval to the applicant under sections 12AA and 80G of the Act. Consequently, the Tribunal directed the Ld. CIT(E) to grant registration and approval to the applicant after providing an opportunity of being heard.

Issue 2:
The second issue involved the rejection of the application for grant of approval under section 80G of the Income Tax Act, 1961. Similar to the first issue, the rejection was based on the failure to provide requisite details for verification. However, the Tribunal found the activities of the society to be genuinely charitable, as evidenced by its operations and objectives. The Tribunal referred to previous orders and directions in the applicant's favor and directed the Ld. CIT(E) to grant approval under section 80G of the Act after the applicant furnishes the necessary details required under the Act. As a result, both appeals filed by the Assessees were allowed by the Tribunal.

In conclusion, the Tribunal allowed the appeal of the assessee, directing the Ld. CIT(E) to grant registration and approval under sections 12AA and 80G of the Income Tax Act, respectively, based on the charitable and genuine nature of the society's activities.