2018 (3) TMI 132 - AT - Income Tax

Grant of registration u/s 12AA and u/s 80G(5)(vi) rejected - Held that - As stated by the assessee before us that at the time of filling applications, the Assessee annexed the following documents with duly filled Form No. l0A and Form No. 10G (i) Complete sets of Audited Balance Sheet and Audit Report for the Assessment Years 2012-13,2011-12 and 2010-11; (ii) Memorandum of Association and Rules & Regulations of the trust;(iii) Certificate of Registration of Societies; and (iv) List of Governing Body Members. Taking note of the fact that ultimately the eligibility of the assessee for registration u/s 12AA of the Act and approval u/s 80G(5)(vi) of the Act has to be decided on merits rather than on the basis of default by the assessee, we are of the view that the impugned orders of the CIT should be set aside and the issue with regard to the grant of registration u/s 12AA of the Act and the approval u/s 80G(5)(vi) of the Act should be directed to be considered afresh by CIT - Decided in favour of assessee for statistical purposes

Summary

Issues Involved:
Appeal against rejection of registration u/s 12AA of the Income Tax Act, 1961 and approval u/s 80G(5)(vi) of the Act.

Analysis:
1. The appellant filed appeals against the rejection of registration u/s 12AA and approval u/s 80G(5)(vi) by the CIT. The applications were made on specific dates, and the CIT rejected them based on concerns regarding the association's dissolution clause and lack of satisfactory explanation of activities.

2. The appellant's counsel argued that both applications relate to the same assessee, requesting adjudication of the registration and approval applications filed on 07.01.2013. Consequently, the appeals related to applications made on 28.04.2014 were dismissed as not pressed.

3. Concerning ITA No.2244/Kol/2013, the appellant, a registered society for educational purposes, applied for registration u/s 12AA and approval u/s 80G(5)(vi) on 07.01.2013. The CIT raised issues regarding the association's dissolution clause, requested documents for verification, and ultimately rejected the applications due to unsatisfactory explanation of activities.

4. The appellant, aggrieved by the CIT's orders, appealed to the Tribunal seeking relief. The Tribunal heard both parties' submissions, including the documents submitted by the appellant during the application process and at the hearing before the CIT.

5. The Tribunal noted that the CIT dismissed the applications for default without considering them on merit. Acknowledging the importance of deciding the eligibility for registration and approval on merits, the Tribunal set aside the CIT's orders. It directed the CIT to reconsider the applications, allowing the appellant to produce necessary documents and affording them a fair hearing.

6. Consequently, the Tribunal allowed ITA Nos.2244 & 2245/Kol/2013 for statistical purposes, directing a fresh consideration of the registration and approval applications. ITA Nos.2156 & 2157/Kol/2014 were dismissed as not pressed. The order was pronounced on 03.01.2018.