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TMI Blog2022 (11) TMI 883X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal 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. - ITA No.2159/Mum./2021 And ITA No.2160/Mum./2021 And ITA No.2202/Mum./2021 And ITA No.2208/Mum./2021 - - - Dated:- 16-11-2022 - Shri Amarjit Singh, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Sukhsagar Syal For the Revenue : Shri Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee trust has raised similar grounds of appeal. For reference, the grounds of appeal raised in ITA No. 2159/Mum./2021 are as under: 1. The Learned Principal Commissioner of Income-Tax (PCITY/ Commissioner of Income- Tax (CIT) grossly erred in issuing order granting registration under section 80G of the Income Tax Act, 1961 (ITA) dated 24.09.2021 which imposed conditions on the basis of which the registration was granted, even though there is no provision in the ITA which permits the PCIT to grant conditional registration. 2. The PCIT failed to appreciate that there is no provision in ITA which permits withdrawal/cancellation of section 80G certificate/order. 3. The PCIT grossly erred in holding that the order granting registra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal before us. 39. It was brought to our notice by the Ld. Sr Counsel appearing on behalf of the assessee that, clause (vi) of Section 80G of the Act provided that the Trust has to be approved by the PCIT or CIT. He thereafter invited our attention to the provisos the said Section which lays down the form and manner for the PCIT or CIT for granting of approval. Taking us through the same, the Ld. AR submitted that the Ld. PCIT / CIT were not conferred with any powers to impose conditions while granting provisional approval u/s 80G and therefore urged that these conditions be struck down. He pointed out that, similar to section 12AB, the second proviso to section 80G(5) only grants the Commissioner the power to grant registration. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter affording it a reasonable opportunity of being heard; 41. Further, the conditions specified in clauses (i) to (v) read as under- (i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 or clause (23AA) or clause (23C) of section 10 : Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if- (a) the institution or fund maintains separate books of account in respect of such business; (b) the donations made t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or a local authority; 42. Referring to the above, Shri Pardiwala submitted that, in law, an approval under section 80G can only be cancelled if the activities of the Trust are not genuine or the conditions specified in clauses (i) to (v) above are violated. He pointed out that none of the conditions imposed in the impugned order are in conformity with the six (6) conditions mentioned in the second proviso to section 80G(5) of the Act. 43. It was submitted that Circular no. 11 of 2022 has also retrospectively modified the conditions imposed in all orders passed under section 80G of the Act between 1 st April, 2021 and 3 rd June, 2022. The said circular provides for the following (4) four conditions- 1. The registration gran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances, the other conditions ought to be struck down. All other submissions made by the Ld. Sr. counsel on the correctness of the order passed under section 80G was mutatis mutandis to the submissions made in relation to the grounds raised in the appeal filed in ITA No.2168/Mum/2021 against the order u/s 12AB of the Act. Per contra, the Ld. CIT-DR was unable to point out any provision in the Act or Rule which could allow the Ld. PCIT/ CIT to prescribe/impose the conditions other than what is stipulated in statute while granting approval u/s 80G of the Act. 45. Therefore, following our conclusions drawn while adjudicating the appeal in ITA No.2168/Mum/2021 holding that the Ld. CIT(E) did not enjoy the power to prescribe/impose any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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