Interpreting Section 80G Provisions: ITAT's Stance on Charitable Institution Registration

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... llate Tribunal (ITAT) concerning the registration of a charitable institution u/s 80G of the Income Tax Act . The case revolves around the rejection of the assessee's application for final approval u/s 80G(5)(iii) by the Commissioner of Income Tax (Exemption) [CIT(E)]. The ITAT's decision sheds light on the interpretation of the relevant provisions and the procedures to be followed for obt .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... se (iii) of the First Proviso to Section 80G(5) . However, the CIT(E) rejected the application, observing that the assessee had already commenced its activities long before the grant of provisional registration, and the time period for making an application under Clause (iii) had expired. Discussions and Findings of the Court The ITAT observed that the issue was squarely covered by the decision of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ly for final registration under Clause (iii) of the First Proviso. The application for final registration cannot be rejected on the ground that the institution had already commenced its activities before the grant of provisional registration. Analysis and Decision by the Court The ITAT analyzed the provisions of Section 80G(5) and the relevant CBDT circulars. It observed that the CIT(E) had miscon .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ise found eligible. The CIT(E) was instructed to decide the application for final approval within two months. Furthermore, the Tribunal directed that if the assessee is granted final approval, the benefit of approval u/s 80G , available to the assessee prior to the amendment, will be deemed to have continued without any break. The assessee will not be deprived of the benefit during the period betw .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... pplication for final approval and directed the CIT(E) to grant provisional approval under Clause (iii) if the assessee is otherwise found eligible. The Tribunal also ensured that the assessee's benefit u/s 80G would continue without any break, considering the technical errors and confusion in interpreting the relevant provisions. The judgement highlighted the importance of correctly interpreti .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X