Tribunal grants condonation of delay for appeal under Income-tax Act, directs approval without civil court order

The Tribunal allowed the appeal, granting condonation of delay for filing the appeal seeking approval under section 80G(5)(vi) of the Income-tax Act, 1961. It held that the delay was justified due to bona fide reasons and admitted the appeal for hearing. The Tribunal directed the Director of Income-tax (Exemptions) to grant approval without requiring the trust to obtain a civil court order for amending the trust deed, as the trust deed empowered the trustees to make such amendments.

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Issues:
Delay in filing appeal seeking condonation of delay, Approval under section 80G(5)(vi) of the Income-tax Act, 1961, Amendment to trust deed through civil court.

Detailed Analysis:
1. Delay in filing appeal seeking condonation of delay:
The appeal was filed by the assessee against an order dated January 11, 2013, passed by the Director of Income-tax (Exemptions), Hyderabad, granting approval under section 80G(5)(vi) of the Income-tax Act, 1961. The delay in filing the appeal was 587 days. The assessee sought condonation of delay, explaining that the delay was due to pursuing the matter before the civil court as directed by the Income-tax Appellate Tribunal. The Tribunal, after considering the submissions, condoned the delay, noting that it was caused due to bona fide reasons and admitted the appeal for hearing.

2. Approval under section 80G(5)(vi) of the Income-tax Act, 1961:
The assessee, a trust registered under section 12A of the Act, applied for approval under section 80G(5)(vi) on November 12, 2012. The initial denial of approval was based on the ground that the trust's activities were not confined to India. However, the trust later amended its deed to restrict activities within India. The Income-tax Appellate Tribunal remitted the matter back to the Director of Income-tax (Exemptions) for reconsideration. The Director insisted that the amendment to the trust deed must be carried out through a civil court, citing a Supreme Court decision. The Tribunal, after reviewing the facts and submissions, held that the trust had fulfilled all conditions for approval under section 80G(5) and directed the Director to grant approval without requiring a civil court order for the amendment.

3. Amendment to trust deed through civil court:
The Director of Income-tax (Exemptions) held that the trust deed amendment must be done through a civil court, as per a Supreme Court decision. However, the Tribunal disagreed, citing a judgment of the Andhra Pradesh High Court, which stated that if the trust deed empowers the trustees to make amendments, there is no need to approach a civil court. The Tribunal directed the Director to grant approval under section 80G(5)(vi) without insisting on a civil court order for the amendment.

In conclusion, the Tribunal allowed the appeal, emphasizing that the trust had fulfilled all conditions for approval under section 80G(5) and that the amendment to the trust deed did not require validation through a civil court, as the trust deed empowered the trustees to make such amendments.

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