2018 (9) TMI 1628 - AT - Income Tax

Exemption u/s 80G denied - registration u/s 12A confirmed - Held that - As the assessee has drawn our attention to the letter of the Income Tax Officer from the Office of the Commissioner of Income Tax, Bhopal confirming the registration u/s 12A w.e.f. 31.12.1990. Under these facts, we deem it proper to set aside the order of the Ld. CIT(Exemption) and restore the application of the assessee to the file of the Ld. CIT(Exemption) to decide afresh in accordance with law after verifying the contention and the contents of the letter dated 25.4.2006 issued by the Income Tax Officer (Tech) for Commissioner of Income Tax, Bhopal. Grounds of the assessee s appeal are allowed for statistical purposes.

Summary

Issues:
- Exemption u/s 80G of the Income Tax Act, 1961
- Rejection of application for exemption u/s 80G

Analysis:
1. Exemption u/s 80G of the Income Tax Act, 1961:
- The appeal was against the order of the Commissioner of Income Tax (Exemption), Bhopal, regarding the denial of exemption u/s 80G. The assessee contended that the registration certificate u/s 12AA was misplaced but confirmed by the concerned authority via a letter dated 25.4.2006. The Ld. Counsel argued that the denial was solely due to the absence of the registration order u/s 12AA.

2. Rejection of application for exemption u/s 80G:
- The rejection was based on the failure to submit the registration order u/s 12AA along with the application form 10G. The authorities emphasized the importance of the registration certificate as a prerequisite for granting exemption u/s 80G. The Ld. CIT (Exemption) issued a show cause notice and subsequently rejected the application, stating that the society's registration was not verifiable from office records.

3. Judicial Decision:
- The ITAT, Indore, after considering the submissions and orders, found merit in the assessee's contentions. The ITAT set aside the order of the Ld. CIT (Exemption) and remanded the application for reconsideration. The ITAT directed a fresh decision after verifying the contents of the letter dated 25.4.2006 confirming the registration u/s 12A. The appeal was allowed for statistical purposes, indicating a favorable outcome for the assessee.

4. Conclusion:
- The judgment highlighted the significance of complying with procedural requirements for claiming exemptions under the Income Tax Act. It underscored the necessity of providing essential documentation, such as registration certificates, to support exemption applications. The ITAT's decision to remand the case for reevaluation demonstrated a fair and thorough approach to ensure proper consideration of the assessee's claims.