2022 (5) TMI 686 - AT - Income Tax

Exemption u/s 11 - refusing to grant registration U/s 80G - registration u/s 12AA is already granted - HELD THAT - As decide in own case 2016 (2) TMI 460 - ITAT DELHI wherein specific direction was given to the Ld. CIT(E) to grant registration U/s 80G of Income Tax Act to the assessee trust. Commissioner of Income Tax, Departmental Representative was present for Revenue, at the time of hearing. We heard him. He could not justify the rejection of assessee s application for registration u/s 80G(5) of Income Tax Act; having regard to specific direction given in the aforesaid order - Neither side has brought any materials for our consideration, to persuade us to take a view different from the aforesaid order of Co-ordinate Bench of ITAT, Delhi Thus direct the Ld. CIT(E) to grant registration to the assessee u/s 80G(5) - Decided in favour of assessee.

Summary

Issues:
- Rejection of registration under section 80G(5) of the Income Tax Act, 1961 by the Learned Commissioner of Income Tax (Exemption), Lucknow.
- Failure to consider the already granted registration under section 12AA.
- Allegations of refusal based on the failure to appear or seek adjournment.

Analysis:
(A) The appeal was filed by the Assessee trust against the order of the Ld. CIT(E) rejecting the registration under section 80G(5) of the Income Tax Act, 1961. The grounds of appeal included contentions that the rejection was erroneous, especially in light of a previous direction from the ITAT to grant registration. Additionally, it was argued that the Ld. CIT(E) failed to consider the fact that registration under section 12AA had already been granted. The refusal to grant registration was also challenged on the basis that the assessee had filed an application seeking adjournment, which was allegedly ignored.

(B) During the appellate proceedings in the ITAT, the assessee submitted a detailed paper book containing various documents, including the trust deed, form No.10G, orders of the ITAT and CIT(Exemption), as well as correspondence with the authorities. The Ld. Counsel for the assessee referred to a previous order dated 13.01.2016 of the ITAT directing the grant of registration under section 80G to the assessee trust. The Ld. CIT-DR representing the Revenue could not justify the rejection of the application in light of the specific direction from the ITAT. Given the lack of new evidence or arguments to counter the previous ITAT order, the impugned order of the Ld. CIT(E) was set aside, and directions were issued to grant registration under section 80G(5) to the assessee trust.

(C) Consequently, the appeal filed by the assessee was allowed for statistical purposes, and the order was pronounced in open court on 12.05.2022. The decision was based on the precedence set by the previous order of the ITAT, emphasizing the importance of following judicial directions in such matters.