Tribunal overrules denial of approval based on land registration, directs grant

The Tribunal allowed the appeal, directing the grant of approval under section 80G(5)(vi) to the appellant institution. The denial of approval by the DIT(E) was solely based on the non-registration of land, despite the institution being registered under the AP Societies Registration Act and having obtained registration under section 12AA. The Tribunal found the denial unjust as there were no compliance issues under section 80G(5) and the appellant had subsequently registered the land. The focus on land registration alone was deemed incorrect, leading to the Tribunal setting aside the DIT(E)'s decision.

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Issues:
1. Denial of approval u/s 80G(5)(vi) by DIT(E) based on non-registration of land in the name of the appellant institution.
2. Legal implications of registration u/s 12AA and fulfillment of conditions under section 80G(5) for approval.

Analysis:
1. The appeal challenged the rejection of the appellant's application for approval u/s 80G(5)(vi) of the IT Act by DIT(E) due to the non-registration of land in the name of the appellant institution. Despite being registered under the AP Societies Registration Act for charitable purposes and obtaining registration u/s 12AA, the denial was based on the absence of land registration, even though funds were received. The ld. AR contended that once a trust is registered u/s 12AA and meets conditions under section 80G(5), approval cannot be refused. The DIT(E) decision was solely focused on the land registration issue.

2. Upon review, the Tribunal noted that the denial of approval was solely due to the non-registration of land, with no allegations of non-compliance with conditions under section 80G(5). The Tribunal emphasized that the appellant was a charitable institution with approved registration u/s 12AA, indicating compliance with charitable objectives. The ld. DIT(E)'s rejection was deemed incorrect, especially as the appellant had subsequently registered the land. Consequently, the Tribunal set aside the DIT(E)'s order and directed the grant of approval u/s 80G(5)(vi) to the appellant, as the land registration issue had been resolved.

In conclusion, the appeal was allowed, and the Tribunal directed the grant of approval u/s 80G(5)(vi) to the appellant, emphasizing the compliance with charitable objectives and the resolution of the land registration issue.

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