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2024 (7) TMI 875 - AT - Income TaxApproval u/s 80G - main objects of the assessee as per Trust deed were relief of poor, education and medical relief - Assessee has amended the trust deed dated and deleted two objects i.e., relief of poor and medical relief and retain only one object of Education - HELD THAT - Although, the assessee has amended the main object, but claimed that by an inadvertent error while filing Form No. 10AB, it was wrongly stated the object of the trust was relief of poor, education and medical relief. We find that as per amended deed dated 01.12.2015, the main object is only Education as stated in application filed u/s 10(23C)(vi) of the Act and in Form No. 10AC issued by the PCIT. It seems that by an inadvertent error, the assessee has referred to all the objects including the objects deleted by way of amended deed dated 01.12.2015. When this fact was brought to the notice of the ld. CIT(E), in our considered opinion, the ld. CIT(E) ought to have considered application filed by the assessee in light of Form No. 10AC issued by the ld. PCIT dated 24.09.2021. Since, the ld. CIT(E) rejected the application of the assessee without considering arguments of the assessee in light of amended deed, we restore appeal back to the file of the ld. CIT(E) for fresh adjudication - Appeal filed by the assessee is allowed for statistical purposes.
Issues:
1. Rejection of application for approval under section 80G of the Income Tax Act. 2. Discrepancy in objects mentioned in the trust deed and application forms. 3. Appeal against the order of the ld. Commissioner of Income Tax (Exemption). Issue 1: Rejection of application for approval under section 80G of the Income Tax Act The appeal was filed against the order of the ld. Commissioner of Income Tax (Exemption) who rejected the application for approval under section 80G of the Income Tax Act. The rejection was based on the grounds that the assessee had obtained approval under a different section of the Act with only one object, but while applying for approval under section 80G, additional objects were added without proper verification or mention in the trust deed. The ld. CIT(E) rejected the application due to this contradiction. Issue 2: Discrepancy in objects mentioned in the trust deed and application forms The assessee had initially mentioned relief of poor, education, and medical relief as objects in the trust deed dated 05.04.2007. However, an amended deed dated 01.12.2015 removed the relief of poor and medical relief objects, retaining only "Education." The appeal argued that while filing the application under a different section, the correct main object of "Education" was mentioned as per the amended deed. The discrepancy in the objects mentioned in the trust deed and the application form was attributed to inadvertent error, and the appeal requested an opportunity to explain this before the ld. CIT(E). Issue 3: Appeal against the order of the ld. Commissioner of Income Tax (Exemption) The appeal was made to the Tribunal against the order of the ld. Commissioner of Income Tax (Exemption). The ld. Counsel for the assessee presented the case, highlighting the amendments in the trust deed and the inadvertent error in mentioning the objects in the application form. The ld. DR agreed to remit the issue back to the ld. CIT(E) for further verification and decision in accordance with the law. After considering all arguments and evidence, the Tribunal decided to set aside the order and remit the appeal back to the ld. CIT(E) for fresh adjudication in light of the various evidences that may be filed by the assessee. This detailed analysis of the legal judgment outlines the issues of rejection of the application for approval under section 80G, the discrepancy in objects mentioned in the trust deed and application forms, and the appeal against the order of the ld. Commissioner of Income Tax (Exemption). The Tribunal's decision to remit the appeal back for fresh adjudication emphasizes the importance of proper verification and consideration of all relevant evidence in such cases.
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