Tribunal reverses decision, grants 80G benefits post 12A registration.

The Tribunal reversed the decision of the CIT(Exemptions) and allowed the appeal, stating that the registration granted under section 12A of the Act was continuing, and therefore, the rejection of the application under section 80G(5) was erroneous. The Tribunal relied on legal precedents to support the decision that once registration under section 12A is granted, the benefits under section 80G cannot be denied. The order under appeal was reversed, and the application filed by the assessee under section 80G was allowed.

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Issues Involved:
- Denial of registration under section 80G(5)(vi) of the Income Tax Act, 1961 by the CIT(Exemptions)

Detailed Analysis:

Issue 1: Denial of registration under section 80G(5)(vi)
The appeal was filed by the assessee against the order of the CIT(Exemptions) denying registration under section 80G(5)(vi) of the Income Tax Act, 1961. The grounds of appeal raised by the assessee included contentions regarding the rejection of the application for approval, the charitable nature of the society, acceptance of returns at nil income, and the genuine nature of the society's activities. The CIT(Exemptions) had rejected the application on the basis that the society was not engaged in any charitable purpose.

Issue 2: Registration under section 12A of the Act
The counsel for the assessee argued that the society was registered under section 12A of the Act by the CIT-I, Lucknow, and that the rejection of the application under section 80G was unfounded as the society was formed for charitable purposes and engaged in charitable activities as per its bye laws. The counsel also highlighted that the registration under section 12A was continuing, and therefore, approval under section 80G should not have been refused.

Issue 3: Examination of books of account
The counsel further contended that the CIT(Exemptions) did not examine the books of account provided by the assessee for verification before rejecting the application for approval under section 80G(5)(vi) of the Act. The counsel referred to relevant case laws to support the argument that once registration under section 12A is granted, the application under section 80G(5) cannot be rejected solely based on the nature of activities.

Judgment and Conclusion:
The Tribunal reversed the decision of the CIT(Exemptions) and allowed the appeal, stating that the registration granted under section 12A of the Act was continuing, and therefore, the rejection of the application under section 80G(5) was erroneous. The Tribunal relied on legal precedents to support the decision that once registration under section 12A is granted, the benefits under section 80G cannot be denied. The order under appeal was reversed, and the application filed by the assessee under section 80G was allowed.

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