2022 (11) TMI 883 - AT - Income Tax

Grant of registration u/s 80G - CIT-E power to prescribe/impose any conditions - certain conditions as mentioned in column No. 10 of the impugned order passed in Form No. 10 AC not met - HELD THAT - Issue decided in favour of assessee as relying on Chamber of Indian Charitable Trusts 2022 (11) TMI 840 - ITAT MUMBAI as held CIT(E) lacked jurisdiction to impose any conditions on his (other than what is stipulated in law) while granting the approval u/s 80G of the Act as well. Accordingly, this appeal also stands allowed. Needless to say, any violations of the conditions prescribed by the statute, will have consequence as sanctioned by law and our observation set out in Para 37 above shall apply with equal force in the context of this registration accorded by the Ld. CIT(E) u/s 80G of the Act as well. Accordingly, respectfully following the aforesaid decision, grounds raised by the assessee trust in the present batch of appeals are allowed.

Summary

Issues:
Challenging registration under section 80G of the Income Tax Act, 1961 due to conditions imposed by the Principal Commissioner of Income Tax, delay in filing appeals, jurisdiction of the Principal Commissioner to impose conditions, applicability of recent decision by the Tribunal.

Analysis:

1. Delay in Filing Appeals:
The appeals were delayed by 3-7 days, but the assessee received the impugned order on the same date it was passed. Referring to a Supreme Court order, the Tribunal excluded the period from 15/03/2020 to 28/02/2022 for limitation purposes in judicial proceedings. As the appeals were due within this period, the delay was considered justified, allowing the Tribunal to proceed with the appeals on merits.

2. Imposition of Conditions by Principal Commissioner:
The assessee challenged the registration under section 80G due to conditions imposed by the Principal Commissioner, arguing that the Act does not permit conditional registration or withdrawal/cancellation of the certificate. The Tribunal referred to Circular no. 11 of 2022, which retrospectively modified conditions imposed under section 80G between 1st April, 2021, and 3rd June, 2022. The Tribunal held that the Principal Commissioner lacked jurisdiction to impose conditions beyond what is stipulated in the law, and only the conditions aligned with the Act could be sustained.

3. Applicability of Tribunal Decision:
The Tribunal noted that the issue raised in the present appeals was covered by a recent decision of a Co-ordinate Bench in a similar case. The Co-ordinate Bench had allowed the appeal of the assessee trust on the grounds that the Principal Commissioner did not have the authority to impose additional conditions while granting approval under section 80G. The Tribunal, respecting the decision of the Co-ordinate Bench, allowed the grounds raised by the assessee trust in the present batch of appeals.

4. Conclusion:
Based on the above analysis, the Tribunal allowed the appeals filed by the assessee trust, concluding that the Principal Commissioner had exceeded his jurisdiction in imposing conditions not specified in the law. The Tribunal clarified that any violations of statutory conditions would have legal consequences, and the findings in the present appeals would not protect the assessee from appropriate action by the Revenue in case of non-compliance. The appeals were allowed, following the decision of the Co-ordinate Bench, and the order was pronounced on 16/11/2022.