Tribunal grants registration under sections 12AA and 80G(5)(vi) emphasizing proper procedures.

The Tribunal allowed the appeals, directing the CIT to grant registration u/s 12AA and approval u/s 80G(5)(vi) with effect from the dates requested by the assessees. The Tribunal found that the CIT failed to conduct proper inquiries and acted mechanically in rejecting the applications, not complying with the provisions of the Income Tax Act. The Tribunal emphasized the need for the CIT to follow proper procedures and granted relief to the assessees based on previous decisions and legal principles.

---

---

Issues Involved:
1. Rejection of application for grant of approval u/s 80G(5)(vi) of the Income Tax Act, 1961.
2. Rejection of application for grant of registration u/s 12AA of the Income Tax Act, 1961.

Summary:

Issue 1: Rejection of application for grant of approval u/s 80G(5)(vi) of the Income Tax Act, 1961

The appeals ITA Nos. 365 & 366/Agra/2012 and ITA No. 417/Agr/2012 were filed by the assessees against the orders of the CIT-I, Agra, rejecting their applications for approval u/s 80G(5)(vi) of the Income Tax Act, 1961. The CIT rejected the applications on the grounds that the assessees failed to provide reliable evidence of their charitable activities. The Tribunal noted that the facts of these cases were identical to those in previous cases decided by the ITAT Agra Bench, where the CIT had also not conducted proper inquiries and merely approved the orders put up by the Assessing Officer. The Tribunal found that the CIT did not apply his mind and acted mechanically, thus failing to comply with the provisions of section 80G of the Act. Consequently, the Tribunal directed the CIT to grant approval u/s 80G(5)(vi) with effect from the date the assessees requested.

Issue 2: Rejection of application for grant of registration u/s 12AA of the Income Tax Act, 1961

The appeals also involved the rejection of applications for registration u/s 12AA of the Income Tax Act, 1961. The Tribunal observed that the CIT did not follow the procedure laid down in section 12AA, which mandates the CIT to call for necessary documents and satisfy himself about the genuineness of the trust's activities. The Tribunal highlighted that the CIT's orders were based on drafts prepared by subordinates and lacked proper inquiry or personal hearing. The Tribunal referred to the Allahabad High Court's decision, which held that if the CIT does not pass an order within six months, the trust is deemed to be granted registration. Following the precedent set by the ITAT Agra Bench in similar cases, the Tribunal directed the CIT to grant registration u/s 12AA with effect from the date the assessees requested.

Conclusion:

The Tribunal allowed all three appeals, directing the CIT to grant registration u/s 12AA and approval u/s 80G(5)(vi) with effect from the dates requested by the assessees. The orders were pronounced in the open Court.

---