2018 (4) TMI 442 - AT - Income Tax

Application for registration u/s. 80G - non filing of revised/amended objects of the society - institution is already registered under section 12AA of the Act - Held that - We are in agreement with the Ld. CIT(E) that the AO and the assessment order cannot replace the prescribed authority as according to Sec.12AA/80G it mandates that where a trust or an institution has been granted registration u/s 12A of the Act then subsequently the prescribed authority can cancel the registration on the ground that the activities of the trust or institution are not genuine or are not being carried out in accordance with objects of the trust or institution as the case may be. It reflects from the record that in the instant case, the appellant did not file revised objects either before the prescribed authority who granted registration u/s 12AA of the Act or before the Ld. CIT(E) during the consideration of application u/s 80G of the Act. Simply by mentioning the new objects in the application for grant of registration u/s 80G does not serve any purpose until and unless the same averment has to be specific with filing of amended Memorandum of Association that the objects which were mentioned in the application are revised/amended having been approved by the authority, who granted the registration u/s 12A of the Act. What prevented the appellant to file the amended/revised objects/Memorandum of Association before the Ld. CIT(E) even after confrontation of the same. DR that even the original Memorandum of Association and amended Memorandum of Association as filed before us does not specify its registration and even no date is reflecting from the aforesaid Memorandum of Association of the appellant. In law, there is specified procedure for amendment of the objects, which required to be notified to the prescribed authority under the Income Tax and which the appellant herein failed to do.

Summary

Issues:
1. Delay in filing the appeal
2. Denial of registration under section 80G of the Income Tax Act
3. Compliance with the conditions specified in section 80G(5) of the Act
4. Requirement of revised/amended objects for registration under section 80G

Issue 1: Delay in filing the appeal

The appellant explained a 50-day delay in filing the appeal, attributing it to a belief that revised/amended objects had been previously submitted. The delay was condoned by the Tribunal, considering the logical reasons provided by the appellant's counsel and emphasizing that genuine litigation should not be dismissed on technicalities.

Issue 2: Denial of registration under section 80G of the Income Tax Act

The appellant contested the denial of registration under section 80G, arguing that the charitable activities conducted, such as publishing and selling books, aligned with the society's objectives and should not be considered commercial. The Tribunal noted discrepancies in the submission of amended objects and emphasized the necessity of registration under section 12AA for section 80G approval. The case was remanded to the CIT(E) for a fresh decision based on registered amended objects.

Issue 3: Compliance with the conditions specified in section 80G(5) of the Act

The Tribunal highlighted the importance of meeting the conditions outlined in section 80G(5) for granting exemption under section 80G. It was observed that the appellant failed to file revised objects before the prescribed authority, raising concerns about the authenticity of the submitted documents. The Tribunal stressed the need for specific and approved amended objects to align with the registration requirements of section 12AA.

Issue 4: Requirement of revised/amended objects for registration under section 80G

The Tribunal acknowledged the discrepancy between the original and amended Memorandum of Association, emphasizing the lack of specific dates and registration details in the amended documents. It was noted that the appellant did not follow the prescribed procedure for amending objects, leading to the remand of the case for a thorough review with the submission of essential documents for proper adjudication.

In conclusion, the Tribunal allowed the appeal for statistical purposes, highlighting the need for compliance with registration requirements and the submission of accurate and approved amended objects for consideration under section 80G of the Income Tax Act.